SolarWinds to go private following $4.4 billion acquisition, stock soars 23%
SolarWinds Corporation, a prominent provider of IT management and security software, has announced it will be acquired by private equity firm Turn/River Capital in an all-cash transaction valued at approximately $4.4 billion.
SolarWinds shareholders will receive $18.50 per share, representing a substantial 35% premium over the 90-day volume-weighted average closing price of the company's stock leading up to the announcement. Following the news, SolarWinds' stock price surged by 23%.
A new chapter
"We have built a great track record of helping customers accelerate business transformations through simple, powerful, secure solutions designed for hybrid and multi-cloud environments," said Sudhakar Ramakrishna, President and CEO of SolarWinds. "We now look forward to partnering with Turn/River to deliver operational resilience solutions for our customers on our SolarWinds Platform, leveraging our premier observability, monitoring, and service desk solutions."
Ramakrishna emphasized the transaction as a testament to the hard work of SolarWinds employees and expressed confidence that Turn/River's expertise would help drive further innovation and value for customers and stakeholders.
Turn/River's growth-focused partnership
Dominic Ang, Founder and Managing Partner of Turn/River Capital, highlighted SolarWinds' leadership in providing secure IT management solutions to a wide range of businesses.
"Their deep commitment to understanding and solving customer needs has led to decades of innovation, impact, and consistent growth," Ang stated. "We are incredibly excited to partner with SolarWinds. By pairing our team of software operators and investors with their relentless focus on customer success, together we aim to accelerate growth and further innovation.”
Transaction details and timeline
The acquisition has been unanimously approved by SolarWinds' Board of Directors and is expected to close in the second quarter of 2025. The transaction is still subject to regulatory approvals and other customary closing conditions.
Thoma Bravo and Silver Lake, SolarWinds’ majority shareholders, holding approximately 65% of the outstanding voting securities, have already approved the transaction.
Upon completion, SolarWinds will become a privately held company, and its common stock will be delisted from the New York Stock Exchange. The company will retain its name, brand, and headquarters in Austin, Texas.
Advisors and financial details
Goldman Sachs & Co. LLC served as the lead financial advisor to SolarWinds, with Jefferies LLC also acting as a financial advisor. DLA Piper LLP (US) provided legal counsel to SolarWinds. Turn/River's financial advisors included J.P. Morgan, Barclays, Santander, and RBC Capital Markets, while Kirkland & Ellis LLP served as legal counsel.
Due to the pending acquisition, SolarWinds has canceled its fourth-quarter and full-year 2024 financial results conference call, originally scheduled for February 11, 2025. The company plans to release its financial results on or before February 14, 2025.
