Mobile payments are a convenient option for making payments, but effectively managing expenses is critical for businesses, particularly around tax time when identifying deductible expenses can significantly reduce tax liabilities. Recently, Certify enhanced its capabilities in expense management through the acquisition of Abacus.
Abacus is noted as the first company to offer real-time expense reporting tools, a feature that has contributed to its impressive growth. The company boasts over 1,000 customers in North America. With Certify having approximately 10,000 customers and being the largest independent provider of expense and travel management solutions, this acquisition is poised to strengthen its market position even further.
The financial details of the deal were not disclosed, but given the rapid expansion of Abacus, it’s likely that the investment was significant.
Robert Neveu, CEO and founder of Certify, remarked on the acquisition, saying, “Acquiring Abacus strengthens and expands our management team, product set, and domain knowledge. The company’s real-time expense management solution is unlike anything else in the marketplace. Omar and his team have done a tremendous job building Abacus, and we look forward to helping them continue to grow their business while enhancing Certify’s leadership position in the spend management space.”
Acquisitions such as this are often strategic moves designed to provide the acquiring company with a competitive edge. This could be through access to a new customer base, the ability to offer more services to existing customers, or a combination of both, aiming to increase market share. Considering Certify’s existing relationships and its recent acquisition by K1 Investment Management, which also involved a coalition with ExpenseWatch, Nexonia, and Tallie, this move is expected to be particularly advantageous.
For small business owners, effective expense management is crucial, especially during tax season when properly managed expenses can mean the difference between a hefty tax bill and significant savings. With the acquisition of Abacus, Certify enhances its ability to simplify expense management for its clients, thereby improving their overall financial health and operational efficiency.
Ellie Dautner, a finance postgraduate from the University of San Diego, is an expert journalist in fintech and mobile payment technology. She specializes in writing about fintech, mobile payments, startup funding, and acquisitions.