Francisco Partners Buying Sumo Logic For $1.7 Billion: Details (SUMO)

By Amit Chowdhry ● Feb 12, 2023
  • Sumo Logic (Nasdaq: SUMO) announced it entered into an agreement to be acquired for $1.7 billion. These are the details.

Sumo Logic (Nasdaq: SUMO) – a SaaS analytics platform to enable reliable and secure cloud-native applications – announced that it has entered into a definitive agreement to be acquired by affiliates of Francisco Partners, a leading global investment firm that specializes in partnering with technology businesses, for $12.05 per share in cash. This all-cash transaction values Sumo Logic at an aggregate equity value of approximately $1.7 billion.

Under the terms of the agreement, Sumo Logic stockholders will receive $12.05 per share in cash. And this represents a premium of approximately 57% to Sumo Logic’s unaffected closing stock price on January 20, 2023, the last full trading day prior to media reports regarding a possible transaction.

Upon the completion of the transaction, Sumo Logic will become a private company with an enhanced ability to expand its market opportunity, innovate on its critical solutions, accelerate growth, and further its vision.


“Since founding Sumo Logic in 2010, we have created a trusted, cloud-native, SaaS analytics platform for observability and security, enabling our customers to transform complexity into insights and accelerate their cloud transformation adoption. Today’s announcement represents a compelling outcome for our stockholders. We are delighted at the prospect of partnering with Francisco Partners in the next phase of Sumo Logic’s journey.”

— Ramin Sayar, President and CEO of Sumo Logic

“The Sumo Logic Board conducted a thorough evaluation of strategic alternatives and spoke with a number of strategic and financial partners. The transaction with Francisco Partners delivers a substantial premium and a compelling cash value to our stockholders. The Board unanimously determined that this transaction maximizes stockholder value and represents the best path forward for Sumo Logic and recommended that stockholders vote in favor of the transaction.”

— Chuck Robel, Lead Independent Director of the Sumo Logic Board of Directors

“Sumo Logic is 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. We look forward to partnering with Sumo Logic to drive accelerated growth and continue its long heritage of product innovation.”

— Brian Decker and Evan Daar, Partners at Francisco Partners

“We are excited to invest in Sumo Logic and support its mission to make the world’s digital experiences reliable and secure.”

— Karl Shum, a Principal at Francisco Partners