Through the acquisition, the US-based publicly listed firm expects to continue to invest in its observability platform as well as to fulfil the data and efficiency needs of its clients with improved flexibility
New Relic to be acquired by Francisco Partners and TPG in $6.5bn deal. (Credit: Gerd Altmann from Pixabay)
Investment firm Francisco Partners and alternative asset management firm TPG have agreed to acquire observability platform New Relic in an all-cash deal that values the platform at an equity valuation of about $6.5bn.
According to the terms of the agreement, New Relic’s shareholders will receive $87 per share in cash from Francisco Partners and TPG.
The consideration for the deal represents a premium of nearly 26% to New Relic’s 30-day volume-weighted average closing price ending on 28 July 2023.
Headquartered in California, New Relic offers a unified data platform to support engineers with a data-driven strategy for planning, creating, implementing and running software.
New Relic CEO Bill Staples said: “New Relic has made significant progress on its consumption business transition and, together with Francisco Partners and TPG, we will have the resources and flexibility to not only complete the final chapter of this transition, but also accelerate our strategy and provide customers with a standardised data-driven practice that any company can benefit from.”
Upon the completion of the transaction, New Relic will no longer be listed on any public market and will become a private company.
Through the acquisition, the US-based company expects to continue to invest in its observability platform as well as to fulfil the data and efficiency needs of its clients with improved flexibility.
Francisco Partners co-founder and CEO Dipanjan Deb said: “We’ve always admired New Relic’s best-in-class technology platform and New Relic’s continued commitment to provide its customers with a product that continually exceeds expectations.”
Subject to customary conditions and regulatory approvals, the transaction is anticipated to be complete in late 2023 or early 2024.