Fast-growing Sayari plans hiring spree after $228M private equity deal

D.C. risk analysis firm Sayari Labs is selling a majority stake to San Francisco private equity firm TPG (NASDAQ: TPG) for $228 million, allowing some existing investors to cash out.

The 9-year-old company said its employees — including its founders — and other existing investors will still own “a significant stake” once the deal closes later this quarter. Its leadership team will remain in place.

The company did not say which investors were exiting. Previous investors included Centana Growth Partners, Lavrock Ventures, SAP NS2, Arsenal Growth Equity, TFX Capital and MissionOG.

Sayari helps government and law enforcement agencies, big corporations and financial institutions identify risk factors for fraud and national security threats in their supply chains. It was one of the Washington Business Journal's Inno on Fire honorees in 2020.

CEO and co-founder Farley Mesko said Sayari plans to use the strategic growth investment to fund its next phase of growth, including a hiring push and acquisition opportunities.

Mesko told me Sayari opted for the sale over raising another round of venture capital or going public because of TPG’s experience backing fast-growing companies and its focus on risk and compliance, government technology and information services.

And although the company will prioritize organic growth, he said, it is “excited to have a partner that allows us to think about M&A, as well.”

Mesko declined to answer questions about what types of companies it would look at or its current revenue. He declined to say whether Sayari is profitable yet.

Sayari plans to grow its headcount to “close to 200” employees by the end of 2024 from 140 today, Mesko said. About 40% of its employees are based in the D.C. metro area with the rest distributed across the U.S. and internationally.

Priority areas for those hires will be across the sales, product and customer success and support teams as it works to grow revenue.

“We have a special focus, as well, on investing more in our international business which is growing at a frankly blistering pace,” Mesko said.

Kevin Higgins, a 30-year veteran of the Central Intelligence Agency, joined its advisory board in the fall.

The company will retain its headquarters in D.C., Mesko said, given the company’s balance between public sector and commercial clients. “I feel like it’s very important to be in the area so we can be hands on and serving those customers in person,” Mesko said.

Mesko said the increase in global tensions and the potential impact on supply chains create opportunity for the company: “You pair all that with just an increased demand for accountability from both citizens and consumers and this more engaged citizen and consumer and I think that for us, we look at that and we see the demand for cross-border transparency only increasing.”