SolarWinds to Be Acquired by Turn/River Capital for $4.4 Billion

SolarWinds Corporation (NYSE: SWI), a provider of observability and IT management software, has announced a definitive agreement to be acquired by Turn/River Capital in an all-cash transaction valued at approximately $4.4 billion. SolarWinds shareholders will receive $18.50 per share, representing a 35% premium to the company’s 90-day volume-weighted average closing price as of February 6, 2025.

SolarWinds President and CEO Sudhakar Ramakrishna stated that the company remains committed to delivering innovative IT management solutions, emphasizing that the partnership with Turn/River Capital will enhance operational resilience offerings on the SolarWinds Platform. He highlighted SolarWinds’ leadership in observability, monitoring, and service desk solutions and expressed confidence that the acquisition will further drive customer success.

Turn/River Capital Founder and Managing Partner Dominic Ang praised SolarWinds for its strong industry presence and history of innovation, stating that the firm is excited to support its next phase of growth. He emphasized that SolarWinds’ commitment to solving customer challenges has driven its long-term success, and this partnership will help accelerate further advancements in IT management solutions.

The acquisition has been unanimously approved by SolarWinds’ Board of Directors and is expected to close in the second quarter of 2025, pending regulatory approvals and customary closing conditions. Majority shareholders Thoma Bravo and Silver Lake, holding approximately 65% of SolarWinds’ outstanding voting securities, have approved the transaction through written consent, eliminating the need for additional shareholder approval.

Upon completion, SolarWinds will become a privately held company and will no longer be listed on the New York Stock Exchange. The company will continue operating under the SolarWinds name and remain headquartered in Austin, Texas.

Goldman Sachs & Co. LLC and Jefferies LLC acted as financial advisors to SolarWinds, with DLA Piper LLP (US) providing legal counsel. J.P. Morgan, Barclays, Santander, and RBC Capital Markets advised Turn/River Capital, with Kirkland & Ellis LLP serving as legal counsel.

Due to the pending acquisition, SolarWinds has canceled its scheduled earnings call for Q4 and full-year 2024 results, originally set for February 11, 2025. However, the company will still report its financial results on or before February 14, 2025. The transaction positions SolarWinds for continued growth, strengthening its ability to deliver innovative, secure, and scalable IT management solutions.