Originally appeared in Spend Matters by JP Morris
Source-to-pay provider Corcentric today announced a $100 million acquisition of the payments technology specialist Vendorin to add to Corcentric’s spend and revenue management solutions and services that help businesses shed paper checks and adopt digital B2B payment methods.
“Corcentric is following the money in B2B,” said Spend Matters Founder Jason Busch, who just wrote an analyst column on where payments vendors fit into the payments technology market. “Corcentric’s acquisition of Vendorin expands its payment capabilities, especially in the small to mid-size market, which presents the largest opportunity to move companies away from checks to ACH and virtual-card transactions. This uniquely North American phenomenon (owing to the legacy of checks) is a land grab at the moment that offers the possibility of both SaaS subscription and rebate/transactional income for providers.”
Corcentric, based in New Jersey, said the cash deal was made possible in part by an $80 million funding round last spring by Bregal Sagemount, according to a press release.
Started in 2007 and based in Hattiesburg, Mississippi, Vendorin was owned by Juvo Technologies. Corcentric’s release describes Vendorin as “a high growth B2B integrated payments network that makes it easy for buyers to enroll and pay their suppliers via any payment method.” And Vendorin’s solution is even called “Inroll.”
Corcentric President and COO Matt Clark was quoted as saying: “Incumbent solutions have not had the right incentive nor technology to disrupt this status quo until Vendorin, and we have been impressed with how sought-after this solution has become. As part of Corcentric, Vendorin will greatly enhance our payment and supply chain finance capabilities that are a key piece of our turnkey suite of procurement, AP and AR solutions.”
Corcentric sees a lot of upside in bringing Vendorin aboard. “The addition of Vendorin paired with Corcentric’s strong supplier relationships enables the company to further monetize transactions through payments, supply chain finance and group purchasing,” the press release said.
Vendorin said it likes how its solutions and customer base fit with Corcentric.
“We are proud to power the AP processes of some of the most influential names in banking, consumer products, automotive, fuel and numerous other industries,” Vendorin COO Robert Johnson said. “Integrating Corcentric’s AP- and AR-focused software and financing capabilities will be revolutionary and bring our payments program management to enterprise companies globally. The market is eager for this type of holistic solution.”
The payments technology market has been busy of late, with Spend Matters’ coverage of the payments sector focusing on aligning procurement with finance/payables, a Fleetcor acquisition, funding rounds and analysts’ insights into technology from AvidXchange, Mineral Tree and Mastercard Track. And the payments market involves hefty amounts of M&A money, like the recent $3.3 billion Payoneer deal for the fintech startup to go public in a merger with a special purpose acquisition company, or SPAC, backed by Bancorp Founder Betsy Cohen.