===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.

-=Tata Motors (TTM) to invest $2 bln in EVs after fundraise from TPG

 * TPG Rise Climate Fund, ADQ to invest $1 bln in Tata's EV unit

* TPG, ADQ to get 11%-15% in new unit, valuing it at $9 bln

* New Tata EV entity to invest in cars, platforms, batteries

NEW DELHI, Oct 13 (Reuters) - Tata Motors will invest over $2 billion in its electric vehicle (EV) business over the next five years, a company executive said on Tuesday, after the Indian automaker announced it had raised funds from private equity firm TPG.

Earlier, Tata Motors said TPG's Rise Climate Fund and Abu Dhabi state holding company ADQ had agreed to invest about $1 billion to expand the company's EV business for which it would form a separate unit.

TPG and ADQ would hold between 11% and 15% in the new EV entity, valuing it at about $9.1 billion, Tata said. The unit will invest in new models, dedicated battery electric vehicle platforms, charging infrastructure and battery technologies.

=Caesars Entertainment (CZR) to be acquired by Eldorado Resorts (ERI) for $8.7B or $13/sh

• Caesars’ shares closed on Friday at $9.99. The company, which emerged from bankruptcy in 2017, operates casinos with the Harrah’s and Horseshoe brands. It had 53 properties in 14 U.S. states and five countries outside the United States at the end of December.

   

(Bloomberg) -- Eldorado Resorts Inc. agreed to buy Caesars Entertainment Corp. for about $8.7 billion in cash and stock, according to a person familiar with the situation.

The deal values Caesars at about $13 a share, according to the person, who asked not to be identified because the information isn’t public. Including assumed Caesars debt, the transaction would be valued at about $18 billion. The combined entity will be split almost equally between shareholders of both companies, the person said, adding that the deal will be announced Monday.

The price represents a 30% premium to Caesars’s close on Friday. Eldorado had a market value of about $4 billion as of Friday.

Caesars had been pushed by activist billionaire Carl Icahn, its biggest shareholder according to data compiled by Bloomberg, to consider a sale. Earlier discussions had focused on a deal that would have valued Caesars at $11 a share, a person familiar with those talks had said.

Eldorado shares have risen 17% in the past year, compared with a 12% decline in Caesars’ stock. The S&P Supercomposite Casinos & Gaming Index, which tracks the performance of nine stocks including the two companies, slumped about 20%.

Caesars shares are trading at 24 times reported earnings, while Eldorado is valued at 33 times, according to data compiled by Bloomberg.

Officials from Eldorado and Caesars declined to comment on the report. Reuters earlier reported the acquisition plan.

The 550 foot-tall (167.6 m) High Roller observation wheel, the tallest in the world, is the centerpiece of the $550 million Linq project, a retail, dining and entertainment district by Caesars Entertainment Corp, in seen in Las Vegas, Nevada April 9, 2014. 

Eldorado wasn’t Caesars’ only suitor. Golden Nugget owner Tilman Fertitta proposed merging his restaurant and casino empire with Caesars last year, but was rejected by Caesars.

Caesars, whose properties include the flagship Caesars Palace and the Harrah’s chain, is still coping with the fallout of a 2008 leveraged buyout led by Apollo Global Management LLC and TPG that left it with a mountain of debt. The company completed a bankruptcy of its largest unit two years ago that brought in new board members and shareholders, including distressed-debt investors. Apollo and TPG have sold their shares.

Eldorado, which dates back to a single casino opened in Reno, Nevada, in 1973, has grown exponentially in recent years under the direction of Tom Reeg, who is now chief executive officer. The company in recent years acquired MTR Gaming Group Inc. and Isle of Capri Casinos, and last year added Tropicana Entertainment Inc., which was controlled by Icahn.

The business, which still counts the founding Carano family as its largest shareholder, now has 26 casinos in 12 states.

=Kindred Healthcare (KND) to be bought by Humana (HUM), PE firms in $4.1 billion deal

Kindred Healthcare confirms to be acquired by a consortium of three cos: TPG Capital, Welsh, Carson, Anderson & Stowe and Humana (HUM) for approximately $4.1 billion in cash or $9.00/share



(Reuters) - Kindred Healthcare Inc said on Tuesday it will be bought by health insurer Humana Inc and two private equity firms in a deal valued at $4.1 billion.

The home healthcare provider and hospice operator said its shareholders will receive $9 per share in cash for each share they own, representing a 4.7 percent premium over the stock’s Friday close.

TPG and Welsh, Carson, Anderson & Stowe are the private equity firms in the deal.