SolarWinds (NYSE:SWI) is going private in a $4.4 billion all-cash deal, with Turn/River Capital acquiring the IT management software firm for $18.50 per sharea solid 35% premium over its 90-day average. Backed by heavyweight investors Thoma Bravo and Silver Lake, who control 65% of the stock, the buyout is all but locked in for Q2 2025. Once the dust settles, SolarWinds will delist from the NYSE and continue business as usual from its Austin headquarters, but with a new level of operational freedom under private ownership.
This deal isn't just another private equity playit's a calculated bet on SolarWinds' dominance in hybrid and multi-cloud IT solutions. CEO Sudhakar Ramakrishna sees it as a game-changer, giving the company room to scale innovation and double down on customer success without Wall Street breathing down its neck. Turn/River, known for optimizing software companies, plans to fuel growth by sharpening SolarWinds' offerings in observability, monitoring, and service desk solutions. The move reflects a broader trend of software firms shifting away from public markets to focus on long-term strategy without short-term earnings pressure.
With the buyout announcement, SolarWinds is skipping its scheduled Q4 2024 earnings call but will still drop its financials by February 14. Goldman Sachs, Jefferies, and J.P. Morgan are steering the transaction, and all that's left is regulatory clearance. If all goes to plan, SolarWinds could enter its next phase with the agility and focus needed to outpace the competitionwithout the market's constant scrutiny.
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