New Relic jumped 10% in the final minutes of trading as The Wall Street Journal reported that the software company is in talks to be sold to buyout firms Francisco Partners and TPG. The report indicates the deal would worth over $5 billion. New Relic finished the session with a market cap of just under $5.8 billion. It’s been a relatively strong performer so far this year, up nearly 50%, though it’s still down around 35% from its 2021 all-time high.
Reuters was the first to report in July last year that New Relic was preparing to explore a potential sale following interest from private equity firms.
The company has been targeted by several activist hedge funds including Jana Partners, Engaged Capital, and Eminence Capital in recent years. Last year, Jana won two board seats at New Relic.
No comments:
Post a Comment