Investor Rolls Up Four Expense Management Software Firms

K1 Investment Management spends more than $125 million to create the largest independent company in expense management software.
Vincent RyanJune 20, 2017
Investor Rolls Up Four Expense Management Software Firms

How do you build a near-market-leader in expense management software? How about by buying up four smaller providers and combining them into one?

That’s the path K1 Investment Management has taken, announcing on Tuesday that it had combined expense management software firms Certify, Nexonia, ExpenseWatch, and Tallie to create a formidable competitor to SAP Concur.

The combined business will serve more than 7,500 enterprise, mid-market, and small-business customers. Notable clients of the combined entity include Marketo, 1-800-Flowers, FitBit, Survey Monkey, Shopify, Century 21, HootSuite, Little Caesars, and Scribd.

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K1 has invested more than $125 million of equity behind the combination, with additional capital available for further acquisitions, it said.

“This is a unique opportunity to unite four complementary market leaders to advance the way that companies manage their travel, time, and expenses” said Eric White, president of Nexonia and Tallie. “By integrating best-of-breed expense solutions and combining industry-leading expertise, Certify, Nexonia, ExpenseWatch, and Tallie are incredibly well-positioned to bring a highly adaptive platform to the rapidly expanding expense management market.”

IDC estimates the market for travel and expense management software will reach $2.46 billion by 2020.

The combined company will maintain operations in Portland, Maine; Toronto, Ontario; San Diego, San Francisco, and Walnut Creek, Calif.; Austin, Texas; and Montreal, Quebec. The combined company will continue to support all customers and product lines in order to provide its customer base with increased opportunities and benefits, K1 said.

K1 Investment Management invests in enterprise software companies. Recent investments include ControlUp, Skuid, and Zapproved.

Featured image: Thinkstock