SolarWinds Acquired by Turn/River Capital for $4.4 Billion

News Summary

SolarWinds Corporation has announced its acquisition by Turn/River Capital in a $4.4 billion deal, priced at $18.50 per share. The acquisition has received unanimous approval from the board and major stakeholders. While awaiting regulatory approval, the transaction is expected to close in the second quarter of 2025, and SolarWinds will remain headquartered in Austin, Texas. The market responded positively, with shares rising by 22%. This acquisition marks a significant shift for SolarWinds as it transitions into private ownership.

Exciting News from Austin: SolarWinds Finds a New Home with Turn/River Capital!

Big changes are on the way for SolarWinds Corporation as they’ve just made headlines by being acquired by Californian private equity firm, Turn/River Capital, in a whopping $4.4 billion deal! This acquisition, which translates to a purchase price of $18.50 per share in cash, is a pretty sweet deal for shareholders, with the offer sitting at about 35% above SolarWinds’ average closing price.

Unanimous Board Approval

There’s no turning back now—the acquisition has received unanimous approval from the Board of Directors at SolarWinds. Not to be left out, major shareholders, including Thoma Bravo and Silver Lake, are backing this move, as they own a combined total of around 65% of SolarWinds’ stock. Clearly, there’s a lot of faith in this partnership!

What’s Next for SolarWinds?

While the excitement builds, it’s important to note that this deal still awaits the green light from regulatory bodies. The transaction is expected to close in the second quarter of 2025. Once the dust settles, SolarWinds will make the leap into private ownership, leaving its days on the New York Stock Exchange behind. But don’t worry, the company is not going anywhere—the headquarters will remain in Austin, Texas, and it will continue to operate under its familiar name and branding.

Stock Market Reaction

22%, showing that investors are optimistic about the company’s future under Turn/River’s guidance.

Enhanced Operational Resilience

On the business side, SolarWinds’ President and CEO has expressed excitement over this partnership, with hopes of boosting their operational resilience solutions to new heights. Turn/River Capital’s founder has also given a nod to SolarWinds as a leader in IT management and software solutions, emphasizing their strong position in the technology landscape.

Addressing Past Challenges

Of course, while this acquisition sounds promising, it’s hard to ignore the challenges that SolarWinds has faced in the past, particularly the notorious cyber breach in 2020. This incident had far-reaching implications, resulting in a congressional investigation and even a lawsuit over allegations of inadequate security measures. The breach sparked discussions about cybersecurity risks that returned to the forefront again when the SEC filed charges against the company and one of its executives back in 2023 for downplaying these risks.

A Cycle of Change

Interestingly, this isn’t the first time SolarWinds has changed ownership models. The company was originally taken private back in 2016 for $4.5 billion after first going public in 2009. SolarWinds was founded in Tulsa, Oklahoma, before moving its operations to Austin, where it has firmly established its roots.

Looking Ahead

As the acquisition process unfolds, some changes are already in the works. SolarWinds has decided to cancel its upcoming financial conference call that was scheduled for February 11, 2025, to avoid any confusion during the transition. Results will still be announced a few days later, on February 14, 2025, allowing everyone to catch up on how the company is progressing through this exciting time.

This acquisition marks a pivotal moment for SolarWinds, and it seems that both the company and its new partners are ready to embrace the journey ahead. Keep your eyes peeled, because there are bound to be plenty of exciting updates coming from this dynamic duo in the near future!

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Turn/River Capital Acquires SolarWinds for $4.4 Billion

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Author: HERE Austin

HERE Austin

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