FlexTecs, a provider of recovery audit, contract compliance, and payment accuracy software and solutions, has announced a strategic investment from Cohere Capital, a Boston-based private equity firm focused on investing in differentiated technology and tech-enabled services companies.
Through its services and technology, FlexTecs reviews more than $1 trillion in client transactions and recovers or prevents over $1 billion incorrect payments annually. The company’s audit team leverages its proprietary technology platform to perform in-year audits, pulling recoveries forward to near real-time and offering preventative recovery solutions. This differentiated business model increases recoveries and accelerates cash collections for its clients.
This strategic investment allows FlexTecs to expand its services and software offering. The existing leadership team will continue to lead the business, with strategic guidance and resources from Cohere Capital and its board advisors.
“This partnership comes at a time of tremendous momentum for FlexTecs,” said Tom Cook, co-founder and CEO of FlexTecs. “We’ve doubled the size of the business over the past three years and have grown our global team to more than 600 employees. Our differentiated model has created a strong foundation and continues to drive market share gains and lasting value for our clients.”
The new investment will enable the company to accelerate its growth trajectory, including strengthening its core recovery audit and contract compliance services while expanding the capabilities of its proprietary SaaS platform, FlexTrap.
“Our tech-enabled services business remains foundational to who we are,” said Cook. “FlexTrap is in the midst of a strategic expansion, building on the deep expertise we’ve developed through years of recovery audits, turning real-world insights into software that helps clients optimize accounts payable, reclaim valuable time, and prevent errors rather than just repeatedly recover them.”
FlexTrap extends FlexTecs into software by addressing what many organizations experience as cash leakage in the payables process. FlexTrap helps prevent payment errors before they occur and automates complex statement reconciliations that often remain manual even in modern accounts payable environments.
Cohere Capital brings experience supporting companies through similar periods of expansion, including scaling SaaS and technology offerings that are part of larger services companies. As part of the partnership, Cohere will support FlexTecs’ growth strategy, including continued service and technology innovation, geographic expansion, and potential strategic acquisitions.
“We are excited to partner with Tom and the rest of the FlexTecs leadership team to build on the momentum they have generated over the last several years. It is clear that a key reason for their success is the experienced team and culture that they have purpose-built,” said Daniel Gedney, co-founder and partner at Cohere Capital. “FlexTecs was founded with technology at its core and that has created tremendous differentiation in the market versus their competitors, which we only expect to accelerate as AI continues to advance.”