Application performance management (APM) services firm New Relic is being taken private in an all-cash transaction valued at $6.5 billion.
It is being jointly acquired by private equity investment firms Francisco Partners and TPG.
The purchase price represents a premium of about 26% on New Relic’s 30-day, volume-weighted average closing price ending on 28 July, 2023, on the New York Stock Exchange.
Lew Cirne, founder and executive chairman of the New Relic Board, said: “Ever since our founding over 15 years ago, New Relic has created and delivered ground-breaking innovations, with a maniacal focus on delivering a leading observability platform to help our customers deliver better software faster.
“We are pleased to partner with Francisco Partners and TPG, who are committed to continuing to build upon New Relic’s strong foundation and achieve its full potential.”
The transaction is expected to close in late 2023 or early 2024, subject to shareholder approval. Under the terms of the agreement, New Relic’s board may solicit alternative acquisition proposals from third parties during a 45-day “go-shop” period.
