GTCR invests $1.33bn in Tricentis, valuing at $4.5bn

Tricentis has announced a $1.33 billion investment from private equity firm GTCR, valuing the company at an enterprise valuation of $4.5 billion.

This investment is set to support Tricentis's growth and continued expansion, with the company projecting to surpass $425 million in annual recurring revenue in 2024, reflecting a 27% year-over-year growth.

GTCR is joining Insight Partners, who originally invested in Tricentis in 2017, to provide strategic support to the company's management team. Both firms will have equal representation on the Tricentis Board of Directors.

Kevin Thompson, Chief Executive Officer at Tricentis, commented, "This investment recognises the incredible company, strong product portfolio and large market opportunity that we have created here at Tricentis. We have had a long and successful partnership with Insight Partners, and I join them in welcoming GTCR as we further accelerate our momentum in enabling enterprises with large, complex IT environments to keep up with the rapid rate of change in their software application environments."

Mark Anderson, Managing Director and Head of Technology, Media and Telecommunications at GTCR, stated, "Tricentis has established itself as a clear leader in software quality testing through its exceptional product suite and the unique value it provides customers and partners. GTCR has a long history of helping scale successful technology and software-based businesses. We are excited to partner with the Tricentis team and Kevin, a leader in this space with whom GTCR has had a long relationship, alongside our partners at Insight to invest in driving additional growth at the company."

Thomas Krane, Managing Director at Insight Partners, added, "Insight Partners has been proud to support Tricentis as it has established itself as a global leader in continuous testing and quality engineering. Businesses and organisations around the world rely on software to drive their success, and Tricentis provides the AI-powered, comprehensive platform to ensure that software runs reliably and efficiently. Tricentis has a huge opportunity ahead as it helps even more companies turn quality into a competitive advantage."

Founded in 2007 in Vienna, Austria, Tricentis is now headquartered in Austin, Texas, with 26 offices worldwide. The company serves some of the largest enterprises globally, including over 60% of the Fortune 500 companies.

The financial advisors assisting in the deal included Evercore as lead financial advisor, alongside J.P. Morgan Securities and Bank of America. Legal advisory was provided by Willkie Farr & Gallagher for Insight Partners and Tricentis, and Kirkland & Ellis for GTCR.

Tricentis is a global specialist in continuous testing and quality engineering. The Tricentis AI-based, continuous testing portfolio of products provides a new and fundamentally different way to perform software testing. An approach that is totally automated, fully codeless, and intelligently driven by AI. It addresses both agile development and complex enterprise apps, enabling enterprises to accelerate their digital transformation by dramatically increasing software release speed, reducing costs, and improving software quality.