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Direct Investment  + M&As  | 
Francisco Partners, TPG in Talks to Buy Software Provider New Relic

Francisco Partners, TPG in Talks to Buy Software Provider New Relic 

Private equity firms TPG and Francisco Partners are in discussion to buy software provider New Relic in a deal worth more than $5 billion, The Wall Street Journal reported. 

The deal would turn the publicly traded New Relic back into a private company, but it’s still possible negotiations won’t succeed. The appearance of additional suitors might also make it more difficult. 

Both Francisco Partners and TPG make sense as potential buyers of New Relic since they have a proven track record of acquiring publicly traded firms and reviving them.  

TPG controls $137 billion in assets and is well known for its investments in both technology and healthcare businesses. It recently announced its plans to buy Angelo Gordon in a deal worth $2.7 billion. 

Technology investment is Francisco Partners’ area of expertise. They announced their intentions to buy the software business Sumo Logic in February for about $1.7 billion. The company has a reputation for being a specialist in difficult carve-out transactions. 

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About Joe Palmisano

Joe Palmisano is Editorial Director for Connect Money, where he brings nearly three decades experience of market insights as a financial journalist, analyst and senior portfolio manager for leading financial publications, advisory firms, and hedge funds. In his role as Editorial Director, Joe is responsible for the selection of content and creation of daily business news covering the financial markets, including Alternative Assets, Direct Investment and Financial Advisory services. Before joining Connect Money, Joe was a financial journalist for the Wall Street Journal, regularly publishing feature stories and trend pieces on the foreign exchange, global fixed income and equity markets. Joe parlayed his experience as a financial journalist into roles as a Senior Research Analyst and Portfolio Manager, writing daily and weekly market analysis and managing a FX and US equity portfolio. Joe was also a contributing writer for industry magazines and publications, including SFO Magazine and the CMT Association. Joe earned a B.S.B.A. in Finance from The American University. He holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.

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