Private equity group TPG has invested $175m in Tanium, a US-based cybersecurity technology provider backed by financial services firm Citi, through its TPG Growth subsidiary, Reuters reported yesterday.
The deal valued Tanium at about $5bn according to people familiar with the matter, who said the company is considering the pursuit of an initial public offering. It is in talks to potentially sell an additional $25m of shares to other existing investors.
Tanium has built a cybersecurity offering intended to give clients greater visibility of even complex, large-scale networks, allowing them to view data covering an entire system in real time, on a single platform where issues can be tackled more efficiently.
TPG Growth’s latest investment included secondary share purchases from early Tanium employees, and it increased the company’s total funding to about $580m since it was founded in 2007, according to press releases and securities filings.
The deal comes after TPG Growth and existing backers including Institutional Venture Partners (IVP) provided $100m for Tanium in May 2017 at a $3.75bn valuation.
The company raised $120m in 2015 from TPG, IVP, Andreessen Horowitz and funds and accounts advised by T. Rowe Price.
Citi’s strategic investment subsidiary, Citi Ventures, is also a Tanium investor, but has not revealed when it provided funding or the size of its commitment.