Tricentis Raises $1.33 Billion in Valuation at $4.5 Billion

Tricentis, a leader in continuous testing and quality engineering solutions, has closed $1.33 billion investment, bringing its valuation to $4.5 billion. The funding came from GTCR, one of the largest private equity firms, after it signed a strategic partnership with Insight Partners, which has backed Tricentis since 2017. In the deal, GTCR and Insight Partners will each have equal representation on the company’s board as it embarks on its next leg of growth.

This investment comes at a time when Tricentis continues to consolidate its position in the software quality market, serving large enterprises and critical industries. CEO Kevin Thompson said: “We are thrilled about the future. The partnership with GTCR will further accelerate Tricentis’ momentum, enabling enterprises to stay ahead in their rapidly changing IT environments.”.

Mark Anderson, Managing Director of GTCR, highlighted Tricentis’ leadership in the software testing space, praising its innovative product suite and the exceptional value it delivers to clients. GTCR’s involvement is expected to drive further growth, leveraging the company’s extensive experience in scaling successful technology and software businesses.

Since its inception in 2007 in Vienna, Austria, later becoming a company based in the United States, Tricentis has been instrumental in transforming the face of software testing. Its key product, Tosca, is designed to facilitate automation of a variety of application testing, such as web services, mobile applications, and cloud workloads. It flags all bugs or performance issues that could have caused problems with application components—ranging from user interfaces to back-end connectors—from not working properly.

Tricentis also offers a range of specialized testing tools, such as LiveCompare for SAP environments and Testim for mobile and web applications. This helps companies save time and increase efficiency through automation in the testing process, and the recent acquisition of SeaLights, an intelligent testing tool, enhances its capabilities further. SeaLights really helps in optimization of testing workflows by identifying needed tests when such software updates are released, thus enabling developers to focus only on the relevant tests and saving valuable time.

Besides its core testing solutions, Tricentis has introduced new services, such as Device Cloud, which enables developers to access mobile devices from leading manufacturers for testing their apps across multiple devices. This service is designed to ensure that mobile applications work seamlessly on a variety of hardware, further improving the quality and consistency of software applications.

With this fresh funding round, Tricentis is poised to further expand its portfolio and speed up product development. The company projects annual recurring revenue of $425 million by the end of 2024, which represents a 27% year-over-year growth rate, above previous growth rates.

Tricentis has gained over 3,000 customers worldwide as a trusted partner to major brands, which include McKesson, Allianz, and Vodafone. The company has been recognized by Forrester, Gartner, and IDC as an industry leader in AI-powered, automated testing solutions.

The funding also means that the demand for AI-driven software quality solutions is ever-increasing, as businesses and organizations worldwide rely on software to drive their success. As digital transformation accelerates across industries, Tricentis is well placed to play a critical role in helping companies maintain the reliability and efficiency of their software applications.

GTCR’s history of scaling successful technology companies, along with Insight Partners’ experience with growth-stage software companies, positions Tricentis to continue its journey as a leader in innovation within the software testing market.

The milestone is reached at an important time for Tricentis as it looks to leverage increasing demand for reliable, high-quality software in a rapidly evolving technological landscape.

Tricentis is a global leader in continuous testing and quality engineering, offering AI-powered, automated solutions that help enterprises accelerate their digital transformation by improving software quality and release speed. The company’s product suite supports a wide range of industries and is used by over 60% of Fortune 500 companies.