Lew Cirne, CEO, New Relic
Scott Mlyn | CNBC
A consortium led by Francisco Partners and personal fairness group TPG will take software program supplier New Relic personal in an all-cash, $87-a-share supply that values the corporate at almost $6.5 billion, the corporate introduced Monday.
New Relic shares rose 14% in pre-market buying and selling, to over $84. The supply represents a 26% premium to New Relic’s 30-day volume-weighted common closing worth, the corporate stated. New Relic builds software program to assist web sites and purposes monitor efficiency.
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The deal is predicted to shut by early 2024, the corporate stated. It will return the corporate to non-public possession almost 9 years after it first debuted on the New York Stock Exchange in 2014.
“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,” New Relic founder and govt chairman Lew Cirne stated in a launch.
Reuters reported in May that Francisco Partners and TPG had ended deal talks after failing to safe sufficient debt financing to fulfill New Relic’s desired valuation. The resurrected deal was introduced concurrently with New Relic’s earnings report.
Since that report, the personal fairness teams have been capable of acquire financing and meet New Relic’s valuation necessities. Major shareholders, together with Cirne and activist hedge fund Jana Partners, have signed off on the deal.
TPG is an alternate asset supervisor with investments throughout the U.S. and Europe.
Francisco Partners is a technology-focused personal fairness agency with previous investments in Barracuda Networks, On Semiconductor, and K2. In current years, the agency has taken different cloud and IT firms personal, together with in a $17 billion deal for Sumo Logic and a 2018 deal for cost know-how firm Verifone.
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Source: www.cnbc.com”