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Insiders told Reuters that New Relic is considering an acquisition by private investors. By doing so, the observability software developer could strengthen its position in the application performance monitoring (APM) market.

According to Reuters, New Relic seeks financial experts to investigate the possibility of an acquisition. The interested parties are unknown. Insiders emphasize that a deal is everything but certain.

Difficult period

New Relic develops observability software that monitors website performance. The company’s results were lacklustre in recent years, partly due to fierce competition in the APM market. Dynatrace and Datadog develop similar tools.

Pressure from Jana Partners

The search for a buyer may have been prompted by investestment manager Jana Partners. This organization is known for pushing a sale of the companies in which it invests. New Relic appointed a partner from Jana Partners to its board of directors in June. New Relic did not comment on the rumours.

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