Private-equity firms Francisco Partners and TPG Inc (NASDAQ:TPG) are collaborating on a bid exceeding $5 billion to acquire software company New Relic (NYSE:NEWR), according to a WSJ report, citing people familiar with the matter.
New Relic shares jumped more than 10% today following the news.
The deal, if successful, is anticipated 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.
TPG, known for investing in both technology and healthcare companies, manages $137B in assets. On Monday, it unveiled its acquisition plans for Angelo Gordon in a transaction valued at $2.7B.
Francisco Partners specializes in technology investing. In February, they revealed plans to acquire Sumo Logic, a software company, for approximately $1.7B. The firm is known for its expertise in complex carve-out transactions, like the acquisition of IBM 's (NYSE:IBM) healthcare-data and analytics assets, which was successfully accomplished in June of the previous year.
Francisco Partners and TPG have a history of collaboration. In 2021, they joined forces to acquire Dell Technologies' (NYSE:DELL) Boomi cloud business for $4B, including debt.