New Relic said the deal will give it the resources and flexibility to provide a a standardised data-driven practice for its customers.
Software provider New Relic is being acquired by a private equity consortium, in an all-cash deal that will turn the company into a private entity.
The deal is being led by global investment firm Francisco Partners and global alternative asset management firm TPG. The transaction values New Relic at $87 per share, to a total of roughly $6.5bn.
The deal is expected to close towards the end of the year or by early 2024. New Relic may also hear alternative offers during a 45-day “go-shop” period.
New Relic is a software company that offers an ‘observability platform’ to help organisations manage their data in a single location and track performance. The US-headquartered company was founded in 2008 and has grown into a massive organisation, with thousands of employees in offices worldwide, including a presence in Ireland.
According to the company, its software is used by large brands including Adobe, Riot Games and Worldview Services.
The deal will turn New Relic private after it went public in 2014. Hope Cochran, the lead independent director of the New Relic board, said the new deal will deliver “significant, immediate value to shareholders”.
“The board is unanimous in its belief that today’s transaction appropriately reflects the company’s innovative and strong business while maximising shareholder value, and I am immensely proud to have worked alongside New Relic’s outstanding management team and my fellow directors to transform New Relic at this pivotal time,” Cochran said.
New Relic CEO Bill Staples said the deal will give the company the “resources and flexibility” to complete its “consumption business transition” and to give customers a standardised data-driven practice.
“I am proud of all that the team at New Relic has achieved, and I thank each of our employees for executing in a dynamic market and contributing to our continued success,” Staples said.
TPG Capital co-managing partner Nehal Raj said the need for visibility is increasing as technology is becoming more “feature rich and AI-enabled”.
“New Relic is a pioneer in the observability market, providing developers and engineers with a unified platform to proactively monitor and manage mission critical applications,” Raj said.
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