Bregal Sagemount Invests in Software Maker Corcentric

The $80 million in growth funding represents a first for the business payments company

The Wall Street Journal

May 5, 2020

Growth-equity firm Bregal Sagemount has committed $80 million to Corcentric LLC, a software company whose products help businesses make purchases and process payments.

The deal—which represents a minority investment by New York-based Bregal—is the first outside institutional capital invested in Corcentric. The transaction closed last Friday.

Cherry Hill, N.J.-based Corcentric provides software that helps reduce costs and automate processes to make and receive payments, and offers services that include sourcing, group purchasing and providing procure-to-pay products.

Founded in 1996, Corcentric has more than $100 million in annual revenue, according to Matt Clark, the company's president and chief operating officer.

Corcentric serves several industries, including manufacturing, wholesale, distribution, retail, financial services and health care, and currently manages over $3 billion in aggregate annual spending by more than 2,000 customers.

Corcentric has a history of growing through acquisitions. In its more recent deals, the company acquired Netsend Ltd. and Determine Inc. last year and Source One Management Services LLC in 2018. Mr. Clark said the company plans to use the new partnership with Bregal to help fuel organic growth by bolstering sales and marketing and making add-on acquisitions.

Mr. Clark said he anticipates "a lot of opportunities" for acquisitions in the second half of this year and in early 2021 as businesses consider their options as the coronavirus pandemic and its economic impact ease.

Bregal Managing Partner Gene Yoon said the firm has been looking for a company in the market for accounts receivable and accounts payable automation software since the firm's inception in 2012. He also said Bregal is interested in businesses "with natural protection against any economic shock."

Bregal's investment in Corcentric is the firm's third from its $1.5 billion third flagship fund. Bregal Sagemount Fund III closed earlier this year, hitting its hard cap. Early last month, Bregal led a $120 million financing round alongside Baring Private Equity for Accellion Inc., a software company that provides firewalls for enterprise content.