New Relic To Be Acquired By Francisco Partners And TPG For $6.5B, Or $87/Share In Cash
Portfolio Pulse from Happy Mohamed
New Relic (NYSE:NEWR) has announced a definitive agreement to be acquired by Francisco Partners and TPG for $87.00 per share in cash, valuing the company at approximately $6.5 billion. The purchase price represents a premium of approximately 26% to New Relic's 30-day volume-weighted average closing price and a 30% premium to its last-twelve-months volume-weighted average closing price. Upon completion of the transaction, New Relic will become a private company.
July 31, 2023 | 1:03 pm
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POSITIVE IMPACT
New Relic's acquisition by Francisco Partners and TPG for $87.00 per share in cash represents a significant premium on its recent trading prices. This is likely to have a positive impact on the stock in the short term.
The acquisition price represents a significant premium on New Relic's recent trading prices, which is likely to drive the stock price up in the short term. Furthermore, the acquisition will provide New Relic with enhanced flexibility to continue investing in its platform, which could potentially strengthen its market position in the long term.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100