Tanium Raises $200 Million at $6.5 Billion Valuation
4.10.2018 securityweek IT
Emeryville, CA-based endpoint security and systems management firm Tanium announced on Tuesday that it has raised an additional $200 million through the sale of common stock, which raises the company’s pre-money valuation to $6.5 billion.
The funding round was led by Wellington Management along with Baillie Gifford & Company and Adage Capital Management, and brings the total amount raised by the company to nearly $800 million.
Founded in 2007, Tanium has been a hot candidate for an initial public offering (IPO), but appears to have put that idea on the back burner, noting that some of the funding “may be used to provide early investor and employee liquidity.”
When asked by if an IPO was on the horizon, Fazal Merchant, COO and CFO at Tanium, told SecurityWeek, “An IPO needs to be a natural evolution of the business. Typical reasons, such as the need for liquidity, aren’t relevant to Tanium at the moment. So, we’re going to maintain focus on the three things that will help ensure our success continues: customers, product, and our people.”
The company said it had approximately $320 million in cash and equivalents as of Jan. 31, 2018, and positive operating cash flow of $25 million.
It also said that its Annual Recurring Revenue of approximately $230 million was up over 80% from the prior year.
Tanium offers a platform that collects and processes billions of metrics across endpoints in real-time, which lets enterprises quickly identify the change the state of endpoints, which can help IT do everything from pinpoint and fix operational issues, to fend off cyberattacks.
In April 2017, the company came under fire when it was accused of exposing a California hospital’s network in a sales demos without client permission.