APEX Analytix, a 15-year-old software company that helps companies capture overpayments before they occur, has raised $7 million in first-round venture capital financing. Investors included the Wakefield Group of Durham and Noro-Moseley Partners of Atlanta.

The investment highlights the criteria that venture capitalists are now requiring in the post-dot-bomb era: clients and revenue.
APEX has both – and profits.

Twenty-five of APEX’s clients are Fortune 100 companies, says Michael Lustig, APEX’s chief executive officer. “We are profitable and have always been self-sustaining from a cash-flow standpoint.”

Plans for growth

Lustig says APEX’s decision to look for and accept outside investments for the first time since its inception is part of an accelerated growth strategy. The Greensboro-based company will use the money to fund product development and complementary acquisitions.

Lustig joined APEX Analytic last December to help the company achieve its growth strategy. Prior to APEX, Lustig was president and chief operating officer of the Profit Recovery Group (PRG), where he helped take the company public in 1996 and grew revenue to “several hundred millions” of dollars.

APEX develops recovery audit software that not only detects and recovers errors, but also prevents errors.

“We’ve been successful because we’ve been able to help companies knock costs out of operations and improve operations,” says Lustig. “We want to be the leader of the recovery audit and contract compliance space.”

Wakefield cites several reasons for making the investment.

“APEX’s robust, analytical tools position them as great advocates for their customers,” says Steve Nelson, partner with the Wakefield Group, in a release. “In addition to recovery audits, APEX Analytix is a valuable resource for global sourcing initiatives, targeted spend analyses, diversity tracking, contract compliance and real time management reporting.”

Founded in 1988 by Jim Arnold, APEX has 75 employees and offices in
California and Pennsylvania.

Apex Analytix: www.apexanalytix.com