Strategic Acquisition: SolarWinds Partners with Turn/River Capital
SolarWinds Joins Forces with Turn/River Capital
In a significant move within the tech industry, SolarWinds Corporation (NYSE:SWI), renowned for its robust IT management and observability software, has confirmed it is set to be acquired by Turn/River Capital. This all-cash acquisition values SolarWinds at approximately $4.4 billion, translating to $18.50 per share. This offer represents a 35% premium over the stock's average closing price, showcasing the confidence in SolarWinds' market position.
A Partnership Built on Innovation
Sudhakar Ramakrishna, President and CEO of SolarWinds, expressed enthusiasm about the partnership with Turn/River Capital. He highlighted the company's success in helping clients navigate transformation through innovative solutions tailored for hybrid and multi-cloud environments. The collaboration aims to enhance operational resilience offerings for customers, creating a synergy of expertise that merges SolarWinds' capabilities with Turn/River's growth strategy.
Celebrating Employee Commitment
Ramakrishna acknowledged the hard work of SolarWinds employees in achieving this pivotal milestone. He emphasized that the new partnership with Turn/River would not only propel the company forward but also reinforce its commitment to delivering exceptional value to clients and stakeholders. This culture of innovation and outstanding service has been a notable factor in SolarWinds' sustained success.
About Turn/River Capital
Turn/River Capital is a respected private equity firm known for its hands-on approach and innovative growth strategies. The firm focuses on partnering with software businesses to accelerate their growth journey, making it an ideal partner for SolarWinds. Dominic Ang, Founder and Managing Partner at Turn/River, expressed excitement about the acquisition, underlining the potential for mutual growth through shared expertise in software and customer engagement.
Key Transaction Details
The acquisition has already gained unanimous approval from SolarWinds' Board of Directors. Additionally, the majority shareholders, including Thoma Bravo and Silver Lake, who own around 65% of the voting securities, have given their consent via written approval. This streamlined process enables the transaction to progress smoothly, with an expected closure in the next quarter.
Future Operations Post-Acquisition
Once the acquisition closes, SolarWinds will transition to a privately-held entity, although it will continue to operate under its current branding. The company remains committed to providing its exceptional services to clients worldwide, leveraging its deep expertise in observability and IT management.
Financial Advisory Team
In this pivotal transaction, Goldman Sachs & Co. LLC is serving as the lead financial advisor to SolarWinds. They are supported by Jefferies LLC, while Turn/River has enlisted a team of advisors from J.P. Morgan, Barclays, Santander, and RBC Capital Markets, ensuring a robust negotiation process.
Looking Ahead: Commitment to Shareholders
The company has made the decision to forego its routine financial call for the fourth quarter, initially scheduled before the dawn of this exciting chapter. However, it remains dedicated to transparency and will publish its financial results shortly. The management team is poised to continue supporting stakeholders through effective communication and reporting.
SolarWinds' Vision
As a leader in IT management software, SolarWinds strives to empower organizations by providing a comprehensive view of modern, distributed networks. The company's software solutions are tailored to meet the challenges encountered by IT professionals globally, including service and operations teams, DevOps, and database administrators.
Frequently Asked Questions
What does the acquisition mean for SolarWinds?
The acquisition by Turn/River Capital aims to enhance SolarWinds' capabilities in delivering software solutions and customer support, ensuring continued innovation and value for clients.
How much is SolarWinds being acquired for?
SolarWinds has agreed to an acquisition deal valued at about $4.4 billion, translating to $18.50 per share for its shareholders.
When is the anticipated close date for the acquisition?
The transaction is expected to close in the second quarter of 2025, pending necessary regulatory approvals.
Will SolarWinds continue operating under its current brand?
Yes, SolarWinds will continue to operate under its existing brand and maintain its headquarters after becoming a privately held company.
How is the acquisition being facilitated?
Goldman Sachs & Co. LLC is the lead financial advisor for SolarWinds, ensuring the deal's smooth progression with support from other financial institutions.
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