GTCR Makes $1.33B Bet on Software Testing Company

GTCR has invested $1.33 billion in Tricentis, valuing the company at $4.5 billion. The deal comes six years after software investor Insight Partners acquired a majority stake in the company in 2017 for $165 million. Both firms will share equal board representation.

Tricentis provides an AI-powered platform for software testing. The company has over 3,000 customers, including McKesson, Allianz, Telstra, Dolby, and Vodafone. The company added that its approach has been particularly valuable for organizations undergoing digital transformation, especially in complex enterprise applications and DevOps environments.

Founded in 2007 in Vienna, Austria and now headquartered in Austin, TX, the company is on track to generate over $425 million in annual recurring revenue in 2024, with a projected growth rate of 27% year-over-year, the company noted.

“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,” said Mark Anderson, managing director at Chicago-based private equity firm GTCR.

Anderson highlighted that firm’s significant experience in scaling technology businesses, having invested more than $25 billion across more than 280 companies since its founding in 1980.

Financial advisors to the company included Evercore Inc. as lead financial advisor, J.P. Morgan Securities LLC, and Bank of America. Legal advisors included Willkie Farr & Gallagher LLP for Insight Partners and Tricentis, and Kirkland & Ellis LLP for GTCR.