
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.
