U.S. cybersecurity company Tanium will be worth more than $5bn after TPG’s growth investment arm raised its stake in the business.
TPG Growth is committing $175m to the company, in which it is an existing investor, according to various reports. The investment increases Tanium’s valuation, which was around $3.75bn about a year ago.
The private equity firm will buy the stock of early employees as part of the deal, and none of the funds is expected to go to the company’s founders according to Reuters, which cited people familiar with the matter. Other investors in Tanium include Andreessen Horowitz, IVP and T. Rowe Price.
Spokespeople for TPG and Tanium did not respond to a request for comment.
Tanium is also reportedly considering an initial public offering; however, there is no certainty it will launch, the sources added.
Founded in 2007, Tanium provides computer system security and management for government agencies and companies, allowing them to scan and assess every device on a network within seconds. Tanium’s customers include 12 of the top 15 U.S. banks and six of the top 10 U.S. retailers, as well as the U.S. Department of Defense.
TPG, which also led a $100m investment in Tanium last year, has also previously backed Tel Aviv-based GuardiCore and Intel’s former security division, McAfee. Zscaler, which also counts TPG as an investor, went public in March, and is trading above its IPO price.
According to research by RegTech Analyst, global cybersecurity investments have made a slow start to the year. The $725.8m invested in Q1 2018 equates to just 15.7% of last year’s total funding. Thus, if investment continues at this pace, it is not projected to surpass 2017’s total. However, investment was similarly slow at the beginning of 2017 and gained momentum later in the year.
Deal activity was also slightly behind pace in Q1, standing at 44 deals which represents 20.6% of the total number of deals closed during 2017. That figure stood at 67 deals at the end of Q1 2017.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
