New Relic Acquisition, Valuation, Funding & Investors

New Relic was acquired by Francisco Partners and TPG for $6.5B in July 2023, a 7.0x multiple on $926M of revenue.

New Relic acquisition price

$6.5B

Acquired by Francisco Partners, TPG · Jul 2023

New Relic revenue at acquisition

$926M

Last twelve months · Jul 2023

New Relic revenue multiple at acquisition

7.0x

EV/Revenue · Jul 2023

Cumulative funding New Relic raised

$215M

across 6 funding rounds

New Relic Overview

About New Relic

New Relic is a software company that sells an observability platform for monitoring the performance and health of applications, infrastructure and digital customer experience. It was founded in 2008 by Lew Cirne, who had earlier founded Wily Technology, and is headquartered in San Francisco. The platform collects metrics, events, logs and traces from software systems into a single data store and gives engineering teams tools for application performance monitoring, infrastructure and Kubernetes monitoring, log management, browser and mobile monitoring, synthetic testing and AI-assisted incident analysis. It is delivered as software-as-a-service to engineering, operations and DevOps teams at companies of all sizes, and it earns revenue from subscriptions and consumption-based usage pricing. New Relic listed on the New York Stock Exchange in 2014 and was taken private in 2023 by Francisco Partners and TPG. It has expanded through a series of small acquisitions of monitoring, serverless, Kubernetes and developer-collaboration start-ups.


Founded

2008

HQ

United StatesSan Francisco, CA

Status

Acquired

Customer focus

B2B

Revenue model

Subscription, Usage-based

Revenue

$63M (Apr 2014)

Valuation

$1B (Apr 2014)

New Relic Acquisition

New Relic was acquired by Francisco Partners and TPG for $6.5B on 31 July 2023.

The acquisition price implies a 7.0x revenue multiple on $926M of revenue.

Before the acquisition New Relic had raised $215M across 6 funding rounds.

New Relic, the San Francisco-based observability and application performance monitoring software provider, agreed on 31 July 2023 to be acquired by Francisco Partners and TPG in an all-cash take-private at $87.00 per share, an equity valuation of about $6.5 billion. The price was a premium to the prior close, and Reuters put the valuation at roughly six times projected 12-month revenue. New Relic reported fiscal 2023 revenue of about $926 million. Francisco Partners, which also owns peer Sumo Logic, and TPG jointly led the buyout; the transaction closed on 8 November 2023, after which New Relic became a private company with more flexibility to keep investing in its all-in-one observability platform.

New Relic acquisition details
AcquirerDateTypePriceEV/Revenue
  • Francisco Partners
  • TPG
31 Jul 2023PE buyout$6.5B7.0x

Sources: franciscopartners.com, newrelic.com

New Relic Valuation

New Relic is currently valued at $1B, based on its undisclosed-stage round in April 2014. Read the announcement ↗

The $100M round was led by BlackRock and Passport Capital, with participation from Wellington Management, Fidelity and T. Rowe Price.

New Relic's valuation has grown 1.3x from $750M at its undisclosed-stage round in February 2013 to $1B in April 2014, across 2 priced rounds.

New Relic valuation by funding round

Revenue multiple
New Relic valuation by funding round
DateStageValuationRevenue Multiple
Apr 2014Undisclosed stage$1B15.9x
Feb 2013Undisclosed stage$750M25.0x

New Relic Revenue

New Relic's latest recorded revenue is $63M, as of its undisclosed-stage round in April 2014. At a $1B valuation, that implies a 15.9x revenue multiple.

Revenue grew from $30M in February 2013 to $63M in April 2014, while the revenue multiple moved from 25.0x to 15.9x.

New Relic revenue by funding round

New Relic revenue and valuation multiple by funding round
DateRevenue *ValuationRevenue MultipleStage
Apr 2014$63M$1B15.9xUndisclosed stage
Feb 2013$30M$750M25.0xUndisclosed stage

* Revenue (or ARR) figures are the values recorded alongside each funding round. Typically run-rate revenue at the time of the deal, or a reported LTM (last 12 months) revenue.

New Relic Funding History

New Relic has raised a total of $215M across 6 funding rounds.

New Relic's first fundraising round was a $4M Series A in January 2008. The most recent completed round was a $100M undisclosed-stage round in April 2014.

New Relic funding rounds

New Relic funding rounds
DateStageInvestorsRaisedValuationDeal Summary
Apr 2014Undisclosed stageBlackRock (lead); Passport Capital (lead); Wellington Management; Fidelity; T. Rowe Price$100M$1BNew Relic, founded in 2008 by Lew Cirne, provides software analytics including application performance management (APM), mobile, servers, and browser monitoring, analyzing over 200 billion data points daily across tens of thousands of customers and 3 million application instances as of April 2014. The company had grown to 70,000 active customer accounts, adding 500 large enterprise customers in the prior year, and was recognized as a Gartner Magic Quadrant leader in APM. On April 28, 2014, New Relic raised $100 million in a financing round led by BlackRock and Passport Capital, with participation from T. Rowe Price Associates and Wellington Management, bringing total funding to $215 million. Sources report the company's valuation at over $1.2 billion post-round, with Clay specifying over $1 billion explicitly for this round. Funds were allocated to product development, international expansion (including a new Dublin office), large enterprise growth, and real-time analytics enhancements. For the fiscal year ended March 31, 2014, New Relic reported $63.2 million in revenue, up from $29.7 million in 2013 and $11.7 million in 2012, with an 83% gross margin but $40.2 million net loss. Sales and marketing expenses consumed 92% of revenue that year. The round built on prior financings, including $80 million in February 2013 led by Insight Partners at a $750 million valuation. New Relic went public later in December 2014, raising $105 million at over $1 billion valuation with $85 million trailing 12-month sales ended September 30, 2014. Investors included prior backers like Benchmark (22% ownership pre-IPO), Trinity Ventures (13.6%), and Allen & Company as advisor.
Feb 2013Undisclosed stageInsight Partners (lead); Tenaya Capital; Dragoneer; Benchmark; T. Rowe Price; Allen & Company; Trinity Ventures; Passport Capital$80M$750MNew Relic, a SaaS-based application performance management provider, raised $80 million in mezzanine financing on February 5, 2013, led by Insight Venture Partners with participation from T. Rowe Price Associates, Dragoneer Investment Group, Passport Ventures, and existing investors Allen & Company, Benchmark Capital, Trinity Ventures, and Tenaya Capital. The post-money valuation was $750 million, as stated by CEO Lew Cirne. Funds were allocated to expand into mobile application management, enter the European market, grow the enterprise footprint, and prepare for a future IPO. The round followed a record-breaking 2012, where New Relic nearly tripled its revenue growth year-over-year, more than doubled its customer base to 35,000 active accounts, and added over 1,200 paying customers in Q4 alone. The company processed 85 billion metrics daily across 1 million app instances, establishing the largest repository of application data. It served thousands of major clients including ESPN, Nike, and Sony, focusing on real-time visibility into application health for cloud, web, and mobile environments. New Relic competed in the growing application performance monitoring space against players like AppDynamics, capitalizing on cloud computing trends and enterprise needs for monitoring apps and server clusters. Plans for 2013 included relocating its San Francisco headquarters, broadening mobile capabilities, and international expansion. By late 2013, customer accounts grew to 80,000, with metrics collection exceeding 200 billion daily and over 500 new enterprise customers added.
Dec 2011Series DDAG Ventures (lead); Four Rivers Group (lead); Tenaya Capital; Benchmark; Allen & Company; Trinity Ventures$15M-New Relic raised $15 million in a venture round reported in December 2011, led by new investors DAG Ventures and Four Rivers Group. Existing backers Allen & Company, Benchmark Capital, Tenaya Capital and Trinity Ventures also took part. Global Venturing, which labelled the round a Series C, noted that Allen & Company was an existing investor and that the earlier rounds had been $3.5 million from Benchmark and $6 million in November 2008. The company followed with an $80 million round in February 2013. New Relic sells software-as-a-service application performance management and was founded in 2008 in San Francisco by Lew Cirne, who had sold his earlier company Wily Technology to CA for $375 million in 2006.
Oct 2010Series CTenaya Capital (lead); Benchmark; Allen & Company; Trinity Ventures$10M-New Relic closed $10 million in Series C venture financing on 14 October 2010, led by Tenaya Capital and joined by Allen & Co., with existing investors Benchmark Capital and Trinity Ventures participating. The company said it would use the funds to continue its growth and cement its position as a provider of application performance management delivered as software-as-a-service. On the same day it extended its monitoring to .NET and PHP in addition to Java and Ruby, which it said doubled its addressable market. Tenaya managing director Brian Melton said New Relic was on a remarkable growth trajectory. New Relic reported a 200 percent year-over-year growth rate, more than 5,500 customers and over 100,000 managed application instances. The San Francisco company was founded in 2008 by Lew Cirne and had by then raised about $19.5 million in total.
Nov 2008Series BTrinity Ventures (lead); Benchmark$6M-New Relic closed a $6.0 million Series B venture financing on 12 November 2008, led by Trinity Ventures with participation from Benchmark Capital, which had made the initial investment. Benchmark general partner Peter Fenton was named chairman of the board and Trinity's Dan Scholnick joined the board as a director. The round followed a $3.5 million Series A earlier in 2008 and brought total funding to about $9.5 million. New Relic was a San Francisco company founded in 2008 by Lew Cirne, and it described itself as the leading provider of Ruby on Rails application performance management. Its subscription RPM product gave developers real-time visibility into the performance of production Rails applications. The software-as-a-service offering was used by more than 850 customers at the time of the announcement.
Jan 2008Series ABenchmark (lead)$4M-Benchmark Capital provided the initial Series A financing of New Relic in 2008, a round of $3.5 million. New Relic was founded in 2008 by Lew Cirne, who had sold his earlier company Wily Technology to CA for $375 million in 2006. Cirne had joined Benchmark as an entrepreneur-in-residence in January 2008 and was persuaded by Benchmark general partner Peter Fenton to take funding and launch the company sooner than he had planned. Fenton later became chairman of the New Relic board. The company built RPM, a subscription-based software-as-a-service product that let developers detect, diagnose and fix performance problems in production Ruby on Rails applications in real time. New Relic is headquartered in San Francisco. The Series A was the only outside financing before the Series B led by Trinity Ventures in November 2008.

Who has invested in New Relic?

13 investors have backed New Relic across its funding rounds, including Benchmark, Trinity Ventures, Tenaya Capital, Allen & Company, T. Rowe Price and Passport Capital.

Lead investors include BlackRock, Passport Capital, Insight Partners, DAG Ventures, Four Rivers Group and 3 other investors.


New Relic Investors

Investors in New Relic by funding rounds participated
InvestorHQRoundsRoleFirst check
BenchmarkUnited StatesSan Francisco, CA5LeadJan 2008
Trinity VenturesUnited StatesMenlo Park, CA4LeadNov 2008
Tenaya CapitalUnited StatesSan Francisco, CA3LeadOct 2010
Allen & CompanyUnited StatesNew York City, NY3ParticipantOct 2010
T. Rowe PriceUnited StatesBaltimore, MD2ParticipantFeb 2013
Passport CapitalUnited StatesSan Francisco, CA2LeadFeb 2013
DragoneerUnited StatesSan Francisco, CA1ParticipantFeb 2013
Wellington ManagementUnited StatesBoston, MA1ParticipantApr 2014
FidelityUnited StatesBoston, MA1ParticipantApr 2014
Four Rivers GroupUnited StatesSan Francisco, CA1LeadDec 2011
BlackRockUnited StatesNew York City, NY1LeadApr 2014

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Benchmark 350K+ Funding Rounds and Disclosed VC Valuation Multiples

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Acquisitions by New Relic

New Relic has acquired 7 companies to date.

Last acquisition by New Relic was on October 21st 2021. New Relic acquired CodeStream for $29M.


Latest Acquisitions by New Relic

CodeStream
Pixie Labs
IOpipe
SignifAI
Description
CodeStream is a developer collaboration tool acquired by New Relic in 2021 that integrates Slack-style chat into VS Code, JetBrains, and Eclipse IDEs. It enables in-context code reviews, shareable snippets, and Jira ticket linking directly from editors. CodeStream supports telemetry sharing and pull request discussions to streamline team workflows.
Pixie Labs is a Shoreditch-based digital product studio in London creating mobile apps and prototypes. The team builds Instagram marketing tools like Tagstar, Bitcoin trading apps such as BitFriends, and Twitter management platforms named Echelon. Pixie Labs consults for The Times and HomeServe on social media and energy monitoring applications.
IOpipe is a serverless DevOps platform processing billions of events monthly for application monitoring and optimization. It supports AWS Lambda and other serverless runtimes with observability tools for performance tracing and debugging. The remote-first company builds products in collaboration with developer communities.
SignifAI is a Sunnyvale, California-headquartered AIOps platform using machine learning to automate IT incident resolution for enterprises. With offices in Tel Aviv, Israel, the company analyzes logs, metrics, and traces to pinpoint root causes, reducing MTTR by integrating with Splunk, Datadog, and ServiceNow. SignifAI serves tech firms like Check Point and LivePerson, achieving 90% automation rates in production environments. Founded in 2018, it raised $12 million in Series A funding.
HQ CountryUnited StatesUnited KingdomUnited StatesUnited States
HQ City
New York City, NY
London
Seattle, WA
San Francisco, CA
Deal Date21 Oct 202110 Dec 20201 Nov 20196 Feb 2019
Valuation$29M$108Mundisclosed$37M
EV/Revenue
EV/EBITDA

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New Relic Competitors

New Relic competitors include listed companies like ServiceNow, Computacenter, SenseTime Group and Wangsu, and private ones like Island and Lambda.

Public and private companies comparable to New Relic
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
ServiceNowUnited StatesUnited StatesPublicly listed$13B$2.6B$106B6.9x
ComputacenterUnited KingdomUnited KingdomPublicly listed$12B$440M$6.5B0.3x
IslandUnited StatesDallas, TXPrivate$200M-$6.4B32.0x
SenseTime GroupChinaChinaPublicly listed$753M($71M)$6.2B5.6x
LambdaUnited StatesSan Jose, CAPrivate$520M-$6B11.5x
WangsuChinaChinaPublicly listed$699M$138M$6B6.4x

New Relic Public Comps

New Relic is no longer listed, but its public comps include Computacenter, SenseTime Group, Wangsu, Box, Octave Intelligence, Nextdc, IONOS Group, Oracle Corp Japan, Presight AI and DigitalOcean.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
Computacenter$12B$440M0.5x0.3x14.3x9.4x
SenseTime Group$753M($71M)6.9x5.6x(73.1x)47.1x
Wangsu$699M$138M7.1x6.4x36.0x32.2x
Box$1.2B$124M5.4x5.0x51.0x16.2x
Octave Intelligence$1.6B$530M3.7x3.6x11.3x10.8x
Nextdc$344M$135M20.9x19.2x53.4x40.5x
IONOS Group$1.5B$508M4.1x3.9x12.0x10.7x
Oracle Corp Japan$1.8B$579M4.1x4.0x12.9x12.3x

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Common questions about New Relic

When was New Relic founded?New Relic was founded in 2008.
Where is New Relic headquartered?New Relic is headquartered in San Francisco, CA, United States.
Is New Relic publicly listed?No, New Relic was acquired by Francisco Partners and TPG in July 2023.
Who acquired New Relic?New Relic was acquired by Francisco Partners and TPG in July 2023.
How much was New Relic acquired for?New Relic was acquired for $6.5B in July 2023, a 7.0x revenue multiple.
What is New Relic's valuation?New Relic was last valued at $1B in its undisclosed-stage round in April 2014.
How much funding has New Relic raised?New Relic has raised $215M across 6 funding rounds.
What was New Relic's last funding round?New Relic's last funding round was a $100M undisclosed-stage round in April 2014, led by BlackRock and Passport Capital.
Who are New Relic's investors?New Relic's investors include Benchmark, Trinity Ventures, Tenaya Capital, Allen & Company, T. Rowe Price, Passport Capital, Dragoneer, Wellington Management, Fidelity, Four Rivers Group and 3 others.
What is New Relic's revenue?New Relic's latest recorded revenue is $63M (April 2014).
What is New Relic's revenue multiple?New Relic's latest valuation implies a 15.9x revenue multiple ($1B valuation on $63M of revenue).
Which companies are comparable to New Relic?Companies comparable to New Relic include ServiceNow, Computacenter, Island, SenseTime Group, Lambda and Wangsu.
How many companies has New Relic acquired?New Relic has acquired 7 companies, including CodeStream, Pixie Labs, IOpipe, SignifAI and CoScale.
What was the largest acquisition by New Relic?The $108M acquisition of Pixie Labs in December 2020 is the largest acquisition New Relic has made to date.

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