New Relic shares took off on Monday after the software company announced it has agreed to be acquired by investment firms Francisco Partners and TPG for $87 per share in cash, valuing the company at approximately $6.5 billion.
The company said in a statement that this purchase price represents a premium of about 26% to New Relic’s 30-day volume weighted average closing price ending on July 28, 2023.
It will return New Relic to a private company after nearly nine years of trading on the New York Stock Exchange.
“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,” New Relic CEO Bill Staples said.
The transaction is expected to close in late 2023 or early 2024, subject to certain conditions including regulatory items.
New Relic shares added 13.4% at the close on Monday at US$83.99.
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