Tricentis Secures $1.33 Billion Investment from GTCR
Deal News | Nov 26, 2024 | Fulcrum Equity Partners Inc
Tricentis, a leader in continuous testing and quality engineering, announced a $1.33 billion investment from GTCR, a leading private equity firm. This investment values Tricentis at $4.5 billion, positioning the company for further growth and innovation. Insight Partners, which already has a significant stake in Tricentis, and GTCR will collaborate with equal representation on the company's Board of Directors to support its continued expansion. Tricentis, founded in Vienna and now headquartered in Austin, Texas, is a global corporation with 26 offices worldwide. It expects to achieve over $425 million in annual recurring revenue by 2024, showcasing substantial growth. The investment is seen as recognizing Tricentis's strong product portfolio and significant market potential, helping enterprises accelerate digital transformation through AI-powered, continuous software testing solutions. Financial advisors for Tricentis included Evercore Inc., J.P. Morgan Securities LLC, and Bank of America. Legal advice was provided by Willkie Farr & Gallagher LLP for Insight Partners and Tricentis, while Kirkland & Ellis LLP advised GTCR.
Sectors
- Software Quality Assurance
- Private Equity
- Technology, Media, and Telecommunications
Geography
- United States – Tricentis is headquartered in Austin, Texas, and GTCR is based in Chicago with offices in New York and West Palm Beach.
- Austria – Tricentis was originally founded in Vienna before becoming incorporated as a U.S. company.
Industry
- Software Quality Assurance – Tricentis specializes in continuous testing and quality engineering, providing innovative AI-powered software testing solutions.
- Private Equity – GTCR, a private equity firm, is making a significant investment in Tricentis, indicating sector interest in technology investments.
- Technology, Media, and Telecommunications – GTCR is focused on investing in companies within this sector, and Tricentis's software solutions cater to these industries.
Financials
- $1.33 Billion – The investment amount by GTCR in Tricentis.
- $4.5 Billion – The enterprise valuation of Tricentis post-investment.
- $425 Million – Projected annual recurring revenue of Tricentis by 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Tricentis | Target | Company | Global leader in continuous testing and quality engineering. |
| GTCR | Bidding Company | Company | Private equity firm investing $1.33 billion in Tricentis. |
| Insight Partners | Selling Company | Company | Global software investor with a significant stake in Tricentis. |
| Evercore Inc. | Financial Advisor | Company | Lead financial advisor to Tricentis for this investment. |
| J.P. Morgan Securities LLC | Financial Advisor | Company | Financial advisor to Tricentis for this investment. |
| Bank of America | Financial Advisor | Company | Financial advisor to Tricentis for this investment. |
| Willkie Farr & Gallagher LLP | Legal Advisor | Company | Legal advisor to Insight Partners and Tricentis. |
| Kirkland & Ellis LLP | Legal Advisor | Company | Legal advisor to GTCR. |