===New Relic (NEWR) to be acquired by Francisco Partners and TPG for $87/share in cash

 

New Relic to be acquired by Francisco Partners and TPG for $87/share in cash, valuing NEWR at approx. $6.5 bln

• NEWR announced that it has entered into a definitive agreement to be acquired by Francisco Partners, a leading global investment firm that specializes in partnering with technology businesses, and TPG, a leading global alternative asset management firm, for $87.00 per share in cash. The all-cash transaction values New Relic at an equity valuation of approximately $6.5 billion.
• The purchase price represents a premium of approximately 26% to New Relic's 30-day volume-weighted average closing price ending on July 28, 2023, and approximately a 30% premium to New Relic's last-twelve-months volume-weighted average closing price ending on July 28, 2023. Upon completion of the transaction, New Relic will become a private company with enhanced flexibility to continue investing in its leading observability platform and meeting the data and efficiency needs of its customers.
• The transaction was approved by the New Relic Board of Directors. New Relic shareholders Lew Cirne, JANA Partners LLC, and HMI Capital Management L.P., representing approximately 20% of New Relic's outstanding shares, have signed voting agreements in support of the transaction. As part of this transaction, Mr. Cirne will be rolling over approximately 40% of his beneficial shareholdings.
• The transaction is expected to close in late 2023 or early 2024, subject to the satisfaction of customary closing conditions and certain regulatory items, including the approval of New Relic's shareholders 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. Upon completion of the transaction, New Relic common stock will no longer be listed on any public market.
• Under the terms of the agreement, New Relic may solicit alternative acquisition proposals from third parties during a 45-day "go-shop" period following the date of execution of the merger agreement. The New Relic Board of Directors will have the right to terminate the merger agreement to enter into a superior proposal subject to the terms and conditions of the merger agreement. There can be no assurances that the "go-shop" will result in a superior proposal. New Relic does not intend to disclose developments related to the solicitation process unless it determines such disclosure is appropriate or is otherwise required.

 New Relic beats by $0.12, reports revs in-line

• Reports Q1 (Jun) earnings of $0.43 per share, excluding non-recurring items, $0.12 better than the FactSet Consensus of $0.31; revenues rose 12.1% year/year to $242.6 mln vs the $243.1 mln FactSet Consensus.
• Operating Margin and Non-GAAP Operating Margin: Operating margin was (13.6)%, compared to (25.7)% one year ago. Non-GAAP operating margin was 15.0%, compared to (7.9)% one year ago.

New Relic (NEWR) to be acquired by TPG, Francisco Partners ?

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.

===Sumo Logic (SUMO) reported earnings on Mon 5 Dec 22 (a/h)

• Update  February 9, 2023:  Francisco Partners has acquired all outstanding shares of Sumo Logic common stock for $12.05 per share in cash, valuing the company at an aggregate equity valuation of approximately $1.7 billion.

Sumo Logic beats by $0.11, beats on revs; guides Q4 EPS above consensus, revs above consensus

• Reports Q3 (Oct) loss of $0.04 per share, $0.11 better than the S&P Capital IQ Consensus of ($0.15); revenues rose 27.4% year/year to $79 mln vs the $74.2 mln S&P Capital IQ Consensus.
• Co issues upside guidance for Q4, sees EPS of ($0.09)-($0.08) vs. ($0.17) S&P Capital IQ Consensus; sees Q4 revs of $77-$78 mln vs. $75.42 mln S&P Capital IQ Consensus.

-=LogMeIn (LOGM) to be acquired for $86.05 per share

• Update Mon 8/31/20 : LogMeIn go-private acquisition by Francisco Partners and Evergreen Coast Capital completed.

LogMeIn to be acquired by affiliates of Francisco Partners and Evergreen Coast Capital for $86.05 per share in cash

Under the terms of the Agreement, LogMeIn shareholders will receive $86.05 in cash for each share of LogMeIn's common stock they hold. This consideration represents a premium of approximately 25% to LogMeIn's unaffected closing stock price on September 18, 2019, the last trading day before a media report was published speculating about a potential sale process. The all-cash transaction values LogMeIn at an aggregate equity valuation of approximately $4.3 billion. The Board of Directors of LogMeIn approved the Agreement and recommended that shareholders vote in favor of the transaction. The transaction is expected to close in mid-2020, subject to customary closing conditions, including the receipt of stockholder and regulatory approvals.

The definitive agreement for the transaction includes a customary 45-day "go-shop" period which permits LogMeIn and its advisors to actively solicit alternative acquisition proposals, and potentially enter negotiations with other parties that make alternative acquisition proposals. LogMeIn will have the right to terminate the definitive agreement to accept a superior proposal subject to the terms and conditions of the definitive agreement. There can be no assurance that this process will result in a superior proposal, and LogMeIn does not intend to disclose developments with respect to the solicitation process unless and until its Board of Directors makes a determination requiring further disclosure.

=VeriFone (PAY) to be acquired by Francisco Partners for $3.4 bln

VeriFone to be acquired by Francisco Partners for $3.4 bln -- stockholders to receive $23.04 per share in cash  

• Under the terms of the agreement, Verifone stockholders will receive $23.04 in cash for each share of Verifone common stock held, representing a premium of approximately 54% to the Company's closing share price of $15.00 on April 9, 2018. The Verifone Board of Directors has unanimously approved the definitive agreement and recommends that Verifone stockholders vote in favor of the transaction.
• The transaction is not subject to a financing condition and is expected to close during the third calendar quarter of 2018, subject to customary closing conditions, including receipt of stockholder and regulatory approvals. The merger agreement includes a "go-shop" period, which permits Verifone's Board and advisors to actively initiate, solicit, encourage, and potentially enter into negotiations with parties that make alternative acquisition proposals through May 24, 2018. There can be no assurance that this process will result in a superior proposal, and Verifone does not intend to disclose developments with respect to the solicitation process unless and until the Board makes a determination requiring further disclosure.