New Relic plans new debt financing for buyout by Francisco and TPG

By Sara Rosenberg

New York, July 31 – New Relic has received a commitment for debt financing to help fund its acquisition by Francisco Partners and TPG, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Other funds for the transaction will come from equity.

Under the agreement, New Relic is being purchased for $87.00 per share in cash. The all-cash transaction values the company at an equity valuation of about $6.5 billion.

There is a 45-day “go-shop” period.

Closing is expected in late 2023 or early 2024, subject to customary conditions and regulatory items, including shareholder approval and expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The transaction is not subject to a financing condition.

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

New Relic is a San Francisco-based provider of an all-in-one observability platform for engineers.

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