Francisco Partners to Buy Data Analytics Sumo Logic in $1.7B Take-Private Deal
Technology-focused private equity house Francisco Partners to take software-as-a-service (SaaS) data analytics firm Sumo Logic private for $1.7 billion in an all-cash deal.
Shareholders of the Silicon Valley-based company will receive $12.05 per share, representing a premium of approximately 57% to the company’s closing price on January 20, 2023, the last trading day prior to media speculation of a possible deal, which is expected to close in the second quarter of the year.
The transaction values Sumo Logic at 22.7% less than when the company first went public nearly 2 ½ year ago. Sumo raised $325.6 million on a market cap of $2.2 billion during the company’s September 2020 initial public offering.
“Today’s announcement represents a compelling outcome for our stockholders. We are delighted at the prospect of partnering with Francisco Partners in the next phase of Sumo Logic’s journey,” Sumo Logic president and CEO Ramin Sayar said.
Private equity firms have taken advantage of the economic downturn to acquire publicly traded cybersecurity vendors at a steep discount, perhaps no more than Thoma Bravo. The private equity giant agreed to spend $12 billion on three identity protection powerhouses in 2022: SailPoint, Ping Identity and ForgeRock.
