Insight Partners Explores $4 Billion-Plus Sale of Software Testing Firm Tricentis
2 Sources
2 Sources
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Insight Partners Explores $4 Billion-Plus Sale of Tricentis, Sources Say
(Reuters) - Private equity firm Insight Partners is exploring a sale of Tricentis, in a deal that it is hoping could value the software provider for developer applications at more than $4 billion, according to four people familiar with the matter. Insight is working with investment bank Evercore to solicit interest from potential buyers, which include other private equity firms, the sources said. Insight Partners may decide to retain a minority stake in the company, one of the sources said. The sources cautioned that no sale was guaranteed and spoke on condition of anonymity to discuss confidential information. Insight, Tricentis and Evercore did not respond to requests for comment. Tricentis, based in Austin, Texas, provides software that helps enterprise development teams fully automate the software testing process, using artificial intelligence. The company said it has more than 2,500 customers, including Accenture, Coca-Cola and Nationwide Insurance. Tricentis generates $430 million in revenue, which it expects to increase by 24% in 2025, according to one of the sources. The business produces nearly $86 million in earnings before interest, taxes, depreciation, and amortization, the source said. Tricentis was founded in Vienna, Austria in 2007. Insight Partners invested in the company in 2017, leading their $165 million financing round. (Reporting by Milana Vinn in New York; Editing by Lincoln Feast.)
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Insight Partners explores $4 billion-plus sale of Tricentis, sources say
Insight Partners may decide to retain a minority stake in the company, one of the sources said. The sources cautioned that no sale was guaranteed and spoke on condition of anonymity to discuss confidential information. Insight, Tricentis and Evercore did not respond to requests for comment. Tricentis, based in Austin, Texas, provides software that helps enterprise development teams fully automate the software testing process, using artificial intelligence. The company said it has more than 2,500 customers, including Accenture, Coca-Cola and Nationwide Insurance. Tricentis generates $430 million in revenue, which it expects to increase by 24% in 2025, according to one of the sources. The business produces nearly $86 million in earnings before interest, taxes, depreciation, and amortization, the source said. Tricentis was founded in Vienna, Austria in 2007. Insight Partners invested in the company in 2017, leading their $165 million financing round. (Reporting by Milana Vinn in New York; Editing by Lincoln Feast.)
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Private equity firm Insight Partners is considering the sale of Tricentis, a software testing company, in a deal that could value the company at over $4 billion. The potential sale highlights the growing importance of software testing in the tech industry.
Insight Partners Considers Tricentis Sale
Private equity firm Insight Partners is exploring the possibility of selling Tricentis, a software testing company, in a deal that could potentially value the firm at more than $4 billion, according to sources familiar with the matter 1. This move comes as Insight Partners seeks to capitalize on the growing demand for software testing solutions in an increasingly digital world.
About Tricentis
Tricentis, founded in 2007 and headquartered in Mountain View, California, has established itself as a leader in the software testing industry. The company provides automated testing tools for enterprise software, helping businesses ensure the quality and reliability of their applications 2. Tricentis serves a diverse range of clients, including notable companies such as McKesson, Allianz, and Telstra.
Insight Partners' Investment History
Insight Partners, a New York-based private equity firm, initially invested in Tricentis in 2017. The firm later took a majority stake in the company in 2021, demonstrating its confidence in Tricentis' potential for growth and market leadership 1. This strategic investment has likely contributed to Tricentis' expansion and market position over the past few years.
Potential Sale Process
Sources indicate that Insight Partners is working with an investment bank to explore the sale of Tricentis 2. While the process is still in its early stages, it has already garnered interest from both private equity firms and technology companies. However, it's important to note that there is no guarantee that the discussions will result in a sale, and the terms of any potential deal may change.
Market Implications
The potential $4 billion-plus valuation of Tricentis underscores the growing importance of software testing in the technology industry. As businesses increasingly rely on complex software systems, the demand for efficient and reliable testing solutions has surged. This trend is likely to continue as digital transformation accelerates across various sectors.
Confidentiality and Future Developments
Both Insight Partners and Tricentis have declined to comment on the potential sale, maintaining confidentiality during this exploratory phase 1. As the situation develops, industry observers will be closely watching for any official announcements or further details regarding the potential transaction.
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