The sale is expected to be completed by the end of this month.
As a shareholder in Totara, Kineo has also agreed to sell its holdings as part of the agreement.
Kineo will remain a Totara Platinum Partner and will continue to provide innovative and transformative solutions to our learning platform customers.
Andy Moss, Managing Director of Corporate Learning at City & Guilds Group, said: "We are delighted about the opportunities that the additional investment and ambition from Five V Capital will bring to Totara.
"We look forward to further deepening our relationship with the team at Totara, and to continuing to enhance the solutions that we bring to our customers."