Media Coverage

South Jersey Tech Firm Corcentric Makes $100M Acquisition

By Corcentric | February 16, 2021

Originally appeared in Philadelphia Business Journal by Michelle Caffrey

Cherry Hill-based payment and procurement software firm Corcentric has acquired an electronic payment services provider for $100 million, less than a year after taking on its first equity-based investment.

Corcentric said it’s purchased Omaha, Nebraska-based Vendorin, which makes an integrated payments network for business-to-business transactions, from Juvo Technologies. Juvo, which is based in Hattiesburg, Mississippi, makes telecom expense management software. The companies did not say how many employees Vendorin has or whether or not they will be joining Corcentric’s team.

The deal was financed with cash on hand from an $80 million investment by private equity firm Bregal Sagemount in May 2020, which gave it a minority stake in Corcentric.

The Bregal Sagemount deal was the first equity-based investment Corcentric has brought on in its 24-year history and was aimed at expanding sales both organically and through acquisitions. It currently employs about 500 people worldwide, including 60 at its headquarters in the Woodland Falls Corporate Park. Corcentric reported $110 million in revenue in 2019, up from $103 million in 2018. In May, the company had expected 2020 revenue would reach about $120 million. An updated revenue total was not immediately available Tuesday.

Corcentric’s expertise is in the B2B payments space, where it now processes more than $320 billion in annual transactions. The company started out as a procurement-focused firm, AmeriQuest, in 1996 before acquiring financial processing automation company Corcentric in 2002. The company decided to move the entire firm under the Corcentric branding in 2018.

Corcentric has expanded its software platform over the years through acquisitions and internal development to make it easier for businesses to handle the way they buy and pay for goods and services from other businesses. Its software is designed to help firms optimize their purchasing from start to finish by automating purchasing orders, moving to paperless invoicing, and paying suppliers electronically through one centralized system.

Vendorin’s platform is designed to make it easy to enroll buyers in its payment network and enable them to pay suppliers with any payment method. The company has been able to help its high-profile clients conduct more automatic electronic transactions, instead of paper-based, which brings in more revenue and reduces costs.

By acquiring Vendorin, Corcentric will be able to “greatly enhance” its payment and supply chain finance capabilities, Corcentric President and COO Matt Clark said in a statement.

“We are in the midst of a broad secular shift from paper payments to electronic. The majority of this spend takes place in the enterprise where a large percent of their indirect spend still gets paid via paper check,” Clark said. “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.”

Corcentric was advised by BofA Securities and Kirkland & Ellis LLP in the deal, and Vendorin was advised by U.S. Bancorp Investments and Morrison & Foerster LLP.