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Francisco Partners & TPG agree $6bn all-cash New relic take private deal

Technology-focused private investment firm Francisco Partners and private equity group TPG are leading a consortium that is planning to take web tracking and analytics business New Relic private in an all-cash deal that values the company at almost $6.5bn. 

Technology-focused private investment firm Francisco Partners and private equity group TPG are leading a consortium that is planning to take web tracking and analytics company New Relic private in an all-cash deal that values the company at almost $6.5bn. 

New Relic’s shares rose 13% in morning trading on Monday after news broke of the $87-a-share offer, which represents a 26% premium to company’s 30-day volume-weighted average closing price.

The deal, which is expected to close in late 2023 or early 2024, will see New Relic back in private ownership nearly nine years after it first listed on the New York Stock Exchange in 2014.

The transaction has been approved by the New Relic Board of Directors, while New Relic shareholders Lew Cirne (Founder and Executive Chairman), JANA Partners, and HMI Capital Management, who represent approximately 20% of the company’s outstanding shares, have also signed voting agreements in support of the transaction. As part of the transaction, Cirne will be rolling over approximately 40% of his beneficial shareholdings.

“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,” said Carne in a press release.

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