New Relic has entered into a definitive agreement to be acquired by Francisco Partners and TPG. The acquisition will be an all-cash transaction, valuing New Relic at approximately $6.5 billion.
The acquisition has been approved by the New Relic board, and major shareholders Lew Cirne, JANA Partners, and HMI Capital Management. As part of the deal, Mr. Cirne will retain about 40% of his beneficial shareholdings.
Once the transaction is completed, New Relic will transition into a private company. The acquisition is expected to close in late 2023 or early 2024, subject to customary closing conditions, regulatory approvals, and the approval of New Relic’s shareholders.
Qatalyst Partners is serving as New Relic’s financial advisor, and Latham & Watkins is acting as legal counsel. On the other side, Morgan Stanley is acting as lead financial advisor to Francisco Partners and TPG, with Goldman Sachs, J.P. Morgan Securities, and Moelis & Company also advising the firms. Davis Polk & Wardwell, Paul Hastings and Kirkland & Ellis are acting as legal counsel to Francisco Partners and TPG, while Freshfields Bruckhaus Deringer is acting as legal counsel to Mr. Cirne.
[Image courtesy: New Relic]