Tango’s Private Equity Funding Confirms The IWMS Landscape Will Get Increasingly Competitive In 2022
On December 6, 2021, integrated workplace management system (IWMS) vendor Tango secured an equity investment from Berkshire Partners, a private equity firm that focuses on communication, consumer, healthcare, industrial and technology sectors. Tango plans to use the funding to expand its geographical reach and enhance existing products, such as optimizing lease administration capabilities.
Founded in 2008, now with 232 employees, US-headquartered Tango provides multi-tenant cloud-based IWMS and Store Lifecycle Management (SLM) software. Tango positions itself as a next-generation IWMS platform built on a single code base and supported by artificial intelligence (AI) and machine learning (ML) modelling. Tango’s heritage is in targeting the retail and restaurant sector but over the past four years it has expanded its corporate real estate customer base working with firms including CBRE and Cushman & Wakefield. It has achieved strong organic growth by replacing legacy IWMS platforms and supporting firms with lease compliance tasks.
This announcement represents the 12th strategic deal closed in the IWMS market during 2021, following a string of private equity investment and M&A. What does this latest deal mean for the broader IWMS sector? This funding confirms that the IWMS landscape is entering a new phase shaped not only by vendor consolidation but the rise of modern IWMS platforms which are receiving larger investments and customer uptake. For instance, in March 2021, modern IWMS platform vendor Nuvolo raised $32 million in a Series C round of funding led by private equity firm Insight Partners, following standout growth in 2020. Next year, legacy IWMS vendors must plan for stronger competitive pressure from well-funded, next-generation vendors that are starting to disrupt the status quo in the sector.
For more insights into the IWMS market and the players, read our report Verdantix Integrated Workplace Management Systems Buyer’s Guide 2020.