Observability Company LogicMonitor Receives $800M Investment That Sets Company Value At $2.4B

Owner Vista Equity Partners has sold a minority stake in the observability platform developer to a consortium of investors but remains the controlling shareholder.

LogicMonitor has raised $800 million in what the observability platform developer called “a transformative” round of new equity and strategic financing that boosts the company’s value to approximately $2.4 billion, the company said Wednesday.

The new funding came from a consortium of investors including PSG, Golub Capital and others. Vista Equity Partners, which acquired LogicMonitor in 2018, sold the consortium a minority stake in the company, but remains the controlling shareholder.

LogicMonitor, headquartered in Santa Barbara, Calif., said the investment round will boost the company’s role “in bridging the intelligence of AI with the operational backbone of data centers” and ensure that mission-critical data centers “operate with optimal performance, sustainability, and resilience.”

[Related: LogicMonitor Chief Product Officer: ‘Observability Is The Heartbeat Of Your Business’]

The investment in LogicMonitor comes as the crowded observability software market is expected to grow from $2.4 billion in 2023 to $4.1 billion by 2028, according to MarketsandMarkets. In addition to LogicMonitor, leading vendors in this space include Splunk (now owned by Cisco), Datadog, IBM, New Relic, Dynatrace and Observe, among others.

LogicMonitor develops a SaaS-based hybrid observability platform that incorporates AI into its capabilities.

"We have secured one of the largest and most significant investments for data center observability management as we are a mission-critical part of the AI race - in short, AI needs data centers and data centers need LogicMonitor,” said LogicMonitor CEO Christina Kosmowski in a statement.

"We are the connective tissue between AI and data center performance as we have the muscle, pedigree, and, most importantly, the data insights to advance the most important and life-altering AI initiatives. This funding round underscores our pivotal role in helping enterprises seize the future of data, automation, and intelligence,” Kosmowski said.

The company said the $800 million investment will enable the company to accelerate its platform expansion efforts, including through possible mergers and acquisitions, expand its presence into new global markets, and diversify into new vertical and industries.