Log management and analytics biz Sumo Logic has agreed to a private equity buyout valuing the firm at around $1.7 billion.
Francisco Partners, a global investment business specializing in the tech sector, has shelled out $12.05 per share in cash to take control of the company, which helps manage and analyze telemetry data from physical machines and has expanded to event logs in computing environments. Sumo Logic counts Airbnb, Sega and Toyota among its customers. The deal is designed to enhance its"ability to expand its market opportunity, innovate on its critical solutions, accelerate growth, and further its vision," according to a statement.
Chuck Robel, lead independent director on the Sumo Logic board, said the sale would offer a"substantial premium and a compelling cash value to our stockholders." In a prepared statement, Brian Decker and Evan Daar of Francisco Partners said Sumo Logic was"ideally positioned" to capitalize 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."