Francisco Partners, a global investment firm, has acquired SaaS analytics platform Sumo Logic in a deal that values the business at $1.7bn.
Shareholders will receive $12.05 per share in cash. This represents a premium of around 57% to Sumo Logic’s unaffected closing stock price on January 20, the last full trading day prior to media reports about the potential transaction.
Following the close of the deal, Sumo Logic will become a private company.
Through the support of its new investor, it hopes to expand its market opportunity, bolster innovation of its solutions, accelerate growth and pursue its ‘vision’.
Founded in 2020, Sumo Logic is a SaaS analytics platform that enables clients to implement reliable and secure cloud applications.
Its Sumo Logic Continuous Intelligence Platform enables developers and practitioners to protect their systems from security threats, as well as get insights about their cloud infrastructure.
Clients leveraging Sumo Logic access real-time analytics and insights for cloud-native applications.
In a joint statement, Brian Decker and Evan Daar – partners at Francisco Partners – said, “Sumo Logic is ideally positioned to capitalise on the large and growing demand from enterprises for observability and security solutions.
“Its leading, cloud-native, analytics platform provides the scalability and insights required as applications and data proliferate in today’s digital world. We look forward to partnering with Sumo Logic to drive accelerated growth and continue its long heritage of product innovation.”
This is the second deal to be completed by Francisco Partners this week. It recently made a strategic growth investment into cloud-based payroll provider GreenSlate.
The payroll company offers remote, paperless and contact-free workflows, allowing companies to streamline operations and reduce their environmental impact.
Sumo Logic reached a $1bn valuation back in 2019, following a $110m investment led by Battery Ventures.
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