Francisco Partners & TPG to take New Relic private in $6 billion deal

A consortium led by Francisco Partners and backstage equity radical TPG volition instrumentality bundle supplier New Relic backstage successful an all-cash, $87-a-share connection that values the institution astatine astir $6.5 billion, the institution announced Monday.

New Relic shares roseate 14% successful pre-market trading, to implicit $84. The connection represents a 26% premium to New Relic's 30-day volume-weighted mean closing price, the institution said. New Relic builds bundle to assistance websites and applications way performance.

The woody is expected to adjacent by aboriginal 2024, the institution said. It volition instrumentality the institution to backstage ownership astir 9 years aft it archetypal debuted connected the New York Stock Exchange successful 2014.

"We are pleased to spouse with Francisco Partners and TPG, who are committed to continuing to physique upon New Relic's beardown instauration and execute its afloat potential," New Relic laminitis and enforcement president Lew Cirne said successful a release.

Reuters reported successful May that Francisco Partners and TPG had ended woody talks aft failing to unafraid capable indebtedness financing to conscionable New Relic's desired valuation. The resurrected woody was announced concurrently with New Relic's net report.

Since that report, the backstage equity groups were capable to get financing and conscionable New Relic's valuation requirements. Major shareholders, including Cirne and activistic hedge money Jana Partners, person signed disconnected connected the deal.

Under the presumption of the deal, New Relic volition person a 45-day "go-shop" period, during which it tin entertain offers from different qualified bidders.

TPG is an alternate plus manager with investments crossed the U.S. and Europe.

Francisco Partners is simply a technology-focused backstage equity steadfast with past investments successful Barracuda Networks, On Semiconductor, and K2. In caller years, the steadfast has taken different unreality and IT companies private, including successful a $17 cardinal woody for Sumo Logic and a 2018 woody for outgo exertion institution Verifone.