#United States #Atlanta #FlexTecs #Cohere Capital #recovery audit

FlexTecs Announces Major Strategic Investment for Growth

In a significant development for the recovery audit sector, FlexTecs, a prominent player specializing in payment accuracy and contract compliance solutions, has unveiled a strategic investment from Cohere Capital, a private equity firm based in Boston. This partnership is designed to bolster FlexTecs' capacity for service expansion and technological innovation, propelling the company toward accelerated growth.

Founded with the mission to revolutionize the audit recovery industry, FlexTecs has become synonymous with efficiency, handling over $1 trillion in client transactions each year, resulting in more than $1 billion in incorrect payments being recovered or avoided. This pioneering firm has demonstrated its remarkable ability to deliver substantial direct savings to its extensive client base. With a technology-first approach, FlexTecs leverages a proprietary platform that allows it to conduct in-year audits in near real-time, providing quick recoveries and preventative solutions that protect against payment errors.

The investment from Cohere Capital symbolizes a pivotal moment for FlexTecs as it seeks to deepen its value proposition for clients while simultaneously expanding its service offerings. The company asserts that this partnership will allow it to enhance its existing leadership structure and preserve the operational model that has been instrumental in its success since inception. Tom Cook, Co-Founder, and CEO of FlexTecs, expressed enthusiasm about this new chapter for the business, noting, "This partnership comes at a time of tremendous momentum for FlexTecs." Cook highlighted the company's impressive growth trajectory, having doubled its business size over the past three years and grown its global workforce to over 600 team members.

Accelerating Growth: Service and SaaS Expansion

FlexTecs has consistently recorded a compound annual growth rate (CAGR) of 25% since 2020, with this new investment positioned to amplify its growth further. The company plans to uphold and strengthen its core recovery audit and contract compliance services, while also expanding the capabilities of its innovative SaaS platform, known as FlexTrap.

Cook commented on the strategic direction of FlexTrap, stating, "Our tech-enabled services business remains foundational to who we are." This SaaS solution aims to curtail cash leakage in the accounts payable process by preventing payment errors before they happen and automating complex reconciliations, thus removing manual bottlenecks even in contemporary AP environments.

Cohere Capital brings extensive experience in aiding companies through similar growth phases, having successfully scaled SaaS and technology offerings that integrate well with broader service frameworks. With Cohere's backing, FlexTecs is anticipating accelerated service and technology innovation, geographic expansion, and the potential for strategic acquisitions.

Daniel Gedney, Co-Founder and Partner at Cohere Capital, expressed excitement regarding the partnership, highlighting the momentum FlexTecs has achieved thanks to its capable leadership team and strong corporate culture. Gedney remarked, "It is clear that a key reason for their success is the experienced team and culture that they have purpose-built." He also acknowledged the role of technology as a core component of FlexTecs' identity, further emphasizing that their unique proposition in the market, particularly as advancements in AI continue to unfold, will only strengthen.

About FlexTecs

FlexTecs is transforming the recovery audit and contract compliance landscape through technology-enabled services aimed at maximizing cash flow and reducing financial risks for clients. Since its inception in 2011, FlexTecs has maintained a forward-thinking approach to recovery audits, employing cutting-edge technology and industry insight to deliver exceptional results. By offering innovative, data-driven solutions, FlexTecs empowers businesses to fine-tune their financial operations while recouping lost funds and preventing future inefficiencies. To learn more, visit www.flextecs.com.

About Cohere Capital

Cohere Capital focuses on investing in middle-market growth companies, particularly those in the software and technology-enabled service sectors. With a flexible investment strategy, Cohere aims to facilitate recapitalizations and growth investments in businesses poised for rapid expansion. For further information, please visit www.coherecapital.com.