Tricentis Acquires Neotys to Enhance Enterprise Testing Capabilities

For organizations utilizing software within large enterprises, Tricentis is a name frequently encountered. However, its recognition remains limited outside of this sphere. Established in Austria in 2007, this software testing firm has evolved from a modest consultancy into a significant force, serving prominent clients such as Allianz, BMW, Starbucks, Deutsche Bank, Toyota, and UBS.

Neotys Acquisition Details

Tricentis recently announced the acquisition of Neotys, a well-regarded performance testing provider specializing in contemporary enterprise applications and employing a tests-as-code approach. The financial terms of this transaction were not publicly disclosed.

Founded in France in 2005, Neotys had secured approximately €3 million in funding prior to the acquisition. Currently, the company supports around 600 customers utilizing its NeoLoad platform. Notable clients include BNP Paribas, Dell, Lufthansa, McKesson, and Verizon – the parent company of TechCrunch.

The Evolution of Testing Methodologies

Tricentis CEO Sandeep Johri highlights a historical reliance on script-based testing tools, which proved inherently fragile with each application update. Tricentis initially addressed this by introducing a low-code solution, streamlining automation and enhancing its robustness.

As traditional enterprises increasingly adopt DevOps practices and accelerate code release cycles, the importance – and complexity – of testing has grown exponentially.

The Importance of Resilient Automation

“Automation is essential, but it must not be prone to failure, requiring extensive repair,” Johri explained. “Our core strength lies in our low-code, model-based automation engine. This has enabled us to increase recurring revenue from $6 million eight years ago to $200 million currently.”

Tricentis’ Vision for Comprehensive Testing

Tricentis aims to become the preferred testing platform for large enterprises. “Our goal is to provide a complete testing solution, encompassing automation, test management, test data, and test case design,” Johri stated.

Expanding Capabilities with Neotys

The acquisition of Neotys expands Tricentis’ offerings to include load and performance testing. While functional testing is crucial before updates, load and performance testing are vital once an application is live in a production environment.

“Prior to deployment, it’s imperative to verify not only that the application functions correctly, but also that it can handle the expected workload with acceptable performance,” Johri emphasized. “This is where load and performance testing becomes critical, driving our decision to acquire Neotys. We possessed some existing capabilities, but they were primarily developer-focused. We required a solution for comprehensive, end-to-end performance and load testing.”

Existing Partnership and Integration

The two companies had previously collaborated and integrated their tools, with a significant number of customers already utilizing both platforms.

Neotys’ Perspective on the Acquisition

“We are excited to join Tricentis, the leader in continuous testing,” said Thibaud Bussière, president and co-founder of Neotys. “Modern Agile and DevOps teams are focused on strategic initiatives and automating tasks for increased efficiency. As part of Tricentis, we can eliminate manual testing efforts, allowing teams to concentrate on valuable analysis and performance engineering.”

Future Integration of NeoLoad

NeoLoad will continue as a standalone product, with anticipated deeper integrations with Tricentis’ existing suite of tools, including Tricentis Analytics.

Tricentis’ Growth Strategy

Johri describes Tricentis as a “best kept secret in Silicon Valley,” owing to its European origins and a conservative approach to venture funding. This aligns with his philosophy of sustainable company building.

“Silicon Valley often prioritizes funding rounds, but I believe each round dilutes ownership,” he explained. “Success without excessive funding is preferable. We’ve demonstrated capital efficiency and are now recognized as a leader in a $30 billion market, which is a significant achievement.”