TPG to invest $336 million in Denodo to help accelerate its global growth

Angel Viña, Chief Executive Officer and Founder of Denodo
Angel Viña, Chief Executive Officer and Founder of Denodo

Denodo, a data management firm, and TPG, a global alternative asset management firm, announced that they have signed a definitive agreement for TPG Growth, the firm’s middle market and growth equity platform, to invest $336m in Denodo’s Series B preferred equity.

The transaction, which includes primary capital and a secondary sale of shares by HGGC, is expected to close in early October following customary regulatory approvals. HGGC, which invested in Denodo’s Series A investment round in 2017, will remain a significant investor.

What does this mean for Denodo?

Denodo has grown into a global leader in data management since HGGC’s investment in the company in 2017, with industry-leading customers across the world. The addition of TPG, and its extensive set of capabilities, is an important next step in Denodo’s growth trajectory.

Commenting on the funding, Angel Viña, CEO and Founder of Denodo, said, “We are excited to welcome TPG as an investor in Denodo, as their deep experience investing in innovative, high-growth companies with disruptive technologies is a perfect fit for our company.”

“This funding is a testament to Denodo’s leadership in the data management market and our further growth potential using the logical-first approach, powered by data virtualization. We look forward to leveraging TPG’s deep experience to continue the rapid expansion of our global market share. We are equally thrilled that HGGC will remain an important investor in Denodo and are thankful for their lasting partnership and ongoing commitment,” Viña said.

What are the investors’ thoughts on Denodo?

Mike Zappert, Partner at TPG
Mike Zappert, Partner at TPG

Commenting on the groundbreaking Denodo platform, Mike Zappert, Partner at TPG, said, “As the rapid growth in the volume, variety, and velocity of data continues, Denodo has established itself as a global leader in data management. Denodo’s unique data virtualization software, which allows enterprises to create unified views of disparate data sources that can be queried easily without moving them, has powered impressive, profitable growth.”

“With a market leading Net Promoter Score of over 50, the company has built a notable roster of marquee, global customers including TPG, and we see a tremendous opportunity to accelerate Denodo’s expansion going forward. We are excited to partner with Angel and his management team on the next phase of their journey,” Mike Zappert further commented.

“Over the last six years, we have observed Denodo’s tremendous growth in both its product leadership. Today, with an even more advanced platform, a roster of large clients, and the strength of the executive team, we see increased future potential for Denodo and look forward to further helping them lead the logical data management movement,” said Steven Leistner, Partner and Co-chief Investment Officer of HGGC and a Denodo Board Member.

The Denodo Platform includes advanced functionality to unify and democratize the use of data. The platform provides a common data layer for the intelligent management of the data traffic that flows from all data sources to users and software apps, helping clients to become more competitive through higher levels of data utilization and compliance, and achieve a radical impact in operational efficiencies. J.P. Morgan was sole placement agent for the deal.

To learn more about this new partnership, click here.