Turn/River Capital Acquires SolarWinds for $4.4 Billion

News Summary

Turn/River Capital has made a significant move in the tech sector by acquiring SolarWinds Corporation for $4.4 billion. SolarWinds shareholders will receive $18.50 per share, marking a substantial premium over previous closing prices. The deal is expected to close by the second quarter of 2025, pending regulatory approvals. This acquisition will transform SolarWinds into a privately-held company but will retain its operations and branding in Austin, Texas. The move has already led to a notable increase in SolarWinds’ stock price as investors react positively.

Big Move in Tech: Turn/River Capital Acquires SolarWinds for $4.4 Billion

Austin, Texas is buzzing with excitement as news breaks about a significant acquisition in the tech world. California-based private equity firm Turn/River Capital has officially locked in a deal to acquire the local tech giant, SolarWinds Corporation, for a whopping $4.4 billion. This acquisition marks a bold step for both companies as they look to reshape the future together.

What’s in the Deal?

For SolarWinds shareholders, this deal is looking pretty sweet. They’re set to receive $18.50 per share in cash, which paints a rosy picture as it’s a substantial premium of about 35% over the company’s average closing price. The excitement is palpable, as the acquisition received unanimous approval from the Board of Directors at SolarWinds, with major shareholders Thoma Bravo and Silver Lake—who collectively control around 65% of the company’s stock—fully backing the transaction.

What’s Next for SolarWinds?

If all goes according to plan, the deal is set to close in the second quarter of 2025, but it will still need to clear regulatory approvals and a few other closing conditions. Once the curtain falls on this chapter, SolarWinds will become a privately-held company and will say goodbye to its listing on the New York Stock Exchange. However, there’s good news for those who love the company’s roots—SolarWinds will continue calling Austin its home and will operate under its recognizable name and branding.

Market Reaction

In the wake of this exciting news, SolarWinds shares saw a nice boost, rising around 22% in early trading. It seems like investors are feeling optimistic about what this acquisition means for the future. The leadership at SolarWinds has expressed a strong enthusiasm about partnering with Turn/River Capital. They see this collaboration as a golden opportunity to enhance the operational resilience solutions they offer to their customers.

Looking Back

For those unfamiliar with the company’s history, SolarWinds has been on quite the journey since its founding in 2006. After relocating its headquarters to Austin from Tulsa, Oklahoma, the company went public in 2009. It was then taken private again in a $4.5 billion deal in 2016. However, its path has not been without challenges. The company faced a massive cyber breach in 2020, compromising data from federal agencies and other private sector companies. Following the breach, the U.S. Cybersecurity and Infrastructure Security Agency ordered all federal civilian agencies to stop using SolarWinds’ Orion products for safety reasons.

The Road Ahead

In 2023, the Securities and Exchange Commission charged SolarWinds and one of its executives for not revealing known cybersecurity risks to investors. While some of the allegations were dismissed, the incident has significantly impacted the company’s reputation. Nonetheless, this recent acquisition is viewed as a turning point to help SolarWinds not only recover but also innovate further in its IT management solutions.

Final Thoughts

It’s an exciting time for SolarWinds and the tech community in Austin. As they prepare to join forces with Turn/River Capital, the focus will be on accelerating growth and enhancing their offerings to better serve customers. Fans of the tech giant should keep their eyes peeled—it looks like there’s plenty to look forward to in the coming years!

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Additional Resources

• BusinessWire
• Wikipedia: SolarWinds
• CRN
• Google Search: Turn/River Capital
• Cybersecurity Dive
• Google Scholar: Turn/River Capital
• Bloomberg
• Encyclopedia Britannica: Turn/River Capital
• Law360
• Google News: SolarWinds and Turn/River Capital