How two private equity firms negotiated New Relic deal down to $6.5 billion

Buyout firms Francisco Partners and TPG saved hundreds of millions of dollars in their $6.5 billion deal to buy New Relic by walking away from negotiations with the business software company in May and then returning two months later with a lower offer, people familiar with the matter said. The two private equity firms offered more than $90 per share in cash to acquire New Relic in May, a bid that the company rejected as inadequate, the sources said. Francisco Partners and TPG walked away from the discussions as a result.

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