Greenhouse, a startup that makes recruiting software used by many tech companies, has been bought out by the private equity giant TPG and its subsidiary The Rise Fund for a reported sum of $500 million in a deal that values the startup at $820 million post-money.

TPG announced that it’s reached a deal purchase a majority stake in Greenhouse but didn’t disclose the amount it’ll pay. The $500 million figure comes from a report from Forbes which got details of the deal. Per the report, TPG will spend close to $450 million to buy shares from existing investors and employees and invest another $50 million into the company.

Greenhouse is backed by $110 million in venture funding so an $820 million exit deal seems like a win for the company. Its investors include the likes of Benchmark Capital, Thrive Capital, Social Capital, and Groupe Arnault.

As it seems, some of Greenhouse’s existing investors will retain minority stakes in the company following TPG’s deal. 

Before this acquisition, Greenhouse last raised funding three years ago. The company had hit hard times in the early months of the Covid-19 pandemic and laid off almost a quarter of its employees that period. Months later, however, it rebounded thanks to a surge in hiring activity across the tech industry.

TPG’s Greenhouse deal is expected to close in the second quarter of 2021. 

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