Francisco Partners, a leading global investment firm that specializes in partnering with technology businesses, and TPG, a global asset management firm, agreed to acquire New Relic for $87.00 per share in cash. The all-cash transaction values New Relic at an equity valuation of approximately $6.5 billion. The purchase price represents a premium of approximately 26% to New Relic’s 30-day volume-weighted average closing price ending on July 28, 2023.
San Francisco-based New Relic offers a data observability platform that empowers engineers to get all telemetry—metrics, events, logs, and traces—paired with a full stack analysis tools.
For its most recent fiscal quarter, New Relic posted total revenue of $242.6 million, up 12% from $216.5 million one year ago. Consumption revenue was $213.9 million, up 39% year over year.
Bill Staples, CEO of New Relic, said, “New Relic has made significant progress on its consumption business transition and, together with Francisco Partners and TPG, we will have the resources and flexibility to not only complete the final chapter of this transition, but also accelerate our strategy and provide customers with a standardized data-driven practice that any company can benefit from. 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.”
