FlexTecs, a provider of recovery audit, contract compliance, and payment accuracy software and services, said it has received a strategic investment from Cohere Capital, a Boston-based private equity firm focused on technology and tech-enabled services businesses.
The company said its platform and audit services review more than $1 trillion in client transactions and recover or prevent more than $1 billion in incorrect payments each year, positioning FlexTecs as an increasingly prominent player in what it describes as a modernized, technology-first approach to the audit recovery market. FlexTecs said its audit team uses a proprietary platform to conduct in-year audits that pull recoveries forward to near real-time, while also offering preventative solutions designed to stop payment errors before they occur.
FlexTecs said the investment will help it expand its services and software offering, accelerate growth, and continue innovating across both its tech-enabled services business and its proprietary SaaS platform, FlexTrap, while maintaining the company’s existing leadership, culture and operating model. The company said its current leadership team will continue to lead the business with added strategic guidance and resources from Cohere Capital and board advisors.
The announcement follows what FlexTecs characterized as several years of rapid expansion. The company said it has doubled in size over the past three years and grown its global workforce to more than 600 employees. FlexTecs also reported a 25% compound annual revenue growth rate since 2020 and said the new capital will support further investment in its core recovery audit and contract compliance services, alongside continued development of FlexTrap.
FlexTecs positioned FlexTrap as a productized extension of its recovery audit expertise, designed to address “cash leakage” in accounts payable by preventing errors before they occur and automating statement reconciliations that often remain manual even in modern AP environments. The company said FlexTrap is undergoing a strategic expansion intended to translate operational insights from audits into software that improves efficiency, reduces time spent on payables work, and shifts organizations from repeated recovery cycles toward prevention.
Cohere Capital said it plans to support FlexTecs’ strategy through service and technology innovation, geographic expansion, and potential acquisitions. The firm also pointed to the role of advancing AI in widening differentiation for companies with technology embedded at the core of their operating model.
KEY QUOTES
“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.”
“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.”
Tom Cook, Co-Founder and CEO, FlexTecs
“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.”
Daniel Gedney, Co-Founder and Partner, Cohere Capital
