Software Company SolarWinds Agrees To Go Private In $4.4B Deal; Stock Skyrockets

Shares of IT management software provider SolarWinds Corporation SWI are surging on Friday.

The company has reached an agreement to be purchased by Turn/River Capital in a cash transaction worth $4.4 billion.

SolarWinds’ shareholders will get $18.50 per share, reflecting a 35% premium over the stock's average closing price over the past 90 days.

The company has secured unanimous approval from its Board of Directors for the acquisition by Turn/River Capital, which is slated for completion in the second quarter of FY25.

The majority shareholders, including Thoma Bravo and Silver Lake, who control approximately 65% of SolarWinds’ voting securities, have already given their written consent for the acquisition.

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“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,” said SolarWinds President and CEO Sudhakar Ramakrishna.

No further approval from other shareholders is necessary for the deal to move forward. After the deal is finalized, SolarWinds will become a privately owned entity.

SolarWinds will retain its name and brand and remain headquartered in Austin, Texas. The transaction is contingent on regulatory approvals and standard closing conditions.

Goldman Sachs & Co. LLC served as SolarWinds’ lead financial advisor, with Jefferies LLC also providing financial advisory services.

The Company plans to report its financial results for the fourth quarter and full year 2024 on or before February 14, 2025.

Price Action: SWI shares are trading higher by 23.1% at $18.50 at the last check Friday.

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