Software company New Relic (NYSE:NEWR) is in the midst of a potential acquisition by private-equity firms Francisco Partners and TPG Inc (NASDAQ:TPG). The bid is reportedly worth more than $5 billion and shares of New Relic jumped 10% today following the news.
TPG is known for investing in both technology and healthcare companies, managing $137B in assets. Francisco Partners specializes in technology investing and is experienced in complex carve-out transactions.
The two firms have a history of collaboration, most recently acquiring Dell Technologies’ Boomi cloud business for $4B, including debt. The deal is expected to be finalized within the upcoming weeks, but there is a possibility that the negotiations might collapse, leading to the emergence of other potential buyers.