New Relic (NYSE:NEWR), a technology company that specializes in application performance monitoring, entered an agreement to be acquired by private equity firms Francisco Partners and TPG for $87 per share. The all-cash transaction values New Relic at approximately $6.5 billion.
The purchase price was a 17% premium to Friday’s close and approximately a 30% premium to New Relic’s last-12-months volume-weighted average closing price.
Rumors of a potential takeover of New Relic first surfaced about a year ago.
The transaction was approved by the company’s Board of Directors, and shareholders representing approximately 20% of its outstanding shares signed voting agreements in support of the transaction.
The transaction is expected to close in late 2023 or early 2024.