As per the terms of the agreement, shareholders of the California-based publicly-listed firm will be paid $12.05 per share by Francisco Partners and following the closing of the deal, Sumo Logic will become a privately held company and its common stock will no longer be listed on any public market
Francisco Partners to acquire Sumo Logic in $1.7bn deal. (Credit: Raysonho @ Open Grid Scheduler / Grid Engine /Wikimedia Commons)
Sumo Logic, a US-based software as a service (SaaS) analytics platform, has agreed to be acquired by affiliates of private equity firm Francisco Partners in an all-cash deal worth around $1.7bn.
As per the terms of the agreement, shareholders of the California-based publicly-listed firm will be paid $12.05 per share by Francisco Partners.
The consideration from Francisco Partners represents a premium of about 57% to Sumo Logic’s closing stock price on 20 January 2023, which was the last full trading day before media speculation about a possible deal.
Following the closing of the deal, Sumo Logic will become a privately held company and its common stock will no longer be listed on any public market.
Established in 2010, Sumo Logic helps its clients in providing reliable and secure cloud-native applications through its SaaS analytics platform.
The Sumo Logic Continuous Intelligence Platform supports practitioners and developers in gaining insights into their cloud infrastructures, securing and protecting against modern security threats, and ensuring application reliability.
Sumo Logic president and CEO Ramin Sayar said: “Since founding Sumo Logic in 2010, we have created a trusted, cloud-native, SaaS analytics platform for observability and security, enabling our customers to transform complexity into insights and accelerate their cloud transformation adoption.
“Today’s announcement represents a compelling outcome for our stockholders. We are delighted at the prospect of partnering with Francisco Partners in the next phase of Sumo Logic’s journey.”
By going private, Sumo Logic is expected to improve its capability to grow its market opportunity, innovate on key solutions, expedite growth, and advance its vision.
Francisco Partners partners Brian Decker and Evan Daar said: “Sumo Logic is ideally positioned to capitalise on the large and growing demand from enterprises for observability and security solutions.
“Its leading, cloud-native, analytics platform provides the scalability and insights required as applications and data proliferate in today’s digital world. We look forward to partnering with Sumo Logic to drive accelerated growth and continue its long heritage of product innovation.”
The deal, which is subject to approval by Sumo Logic’s stockholders, regulatory approvals, and other customary conditions, is expected to close in Q2 2023.