Francisco Partners and TPG to take observability platform New Relic private for $6.5bn

• When the transaction closes, New Relic will stop trading on the New York Stock Exchange
• The transaction is expected to close in late 2023 or early 2024
• Qatalyst Partners is serving as financial advisor to New Relic while Morgan Stanley is acting as lead financial advisor to Francisco Partners and TPG

Francisco Partners and TPG have agreed to acquire New Relic, a San Francisco-based observability platform for every engineer, in a take-private deal for about $6.5 billion.

According to terms of the agreement, New Relic shareholders will receive $87 per share in cash.

When the transaction closes, New Relic will stop trading on the New York Stock Exchange.

“We continue to see tremendous opportunity for New Relic given their unique position in an evolving industry, and as a private company we believe they will achieve their full potential and optimize observability,” said Brian Decker and Evan Daar, partners at Francisco Partners, in a statement.

The transaction is expected to close in late 2023 or early 2024.

Qatalyst Partners is serving as financial advisor to New Relic while Morgan Stanley is acting as lead financial advisor to Francisco Partners and TPG. Goldman Sachs, J.P. Morgan Securities LLC, and Moelis & Company are also advising the firms.

Francisco Partners invests in technology and technology-enabled businesses. The firm has about $45 billion in capital raised to date.

Founded in San Francisco in 1992, TPG has $137 billion of assets under management.