SolarWinds (SWI, Financials), a provider of IT management and observability software, has agreed to be acquired by Turn/River Capital in an all-cash transaction valued at $4.4 billion, the company announced Friday.
Deal conditions call for SolarWinds stockholders to receive $18.50 per share, a 35% premium over the volume-weighted average closing price of the shares for the preceding 90 trading days. Approved unanimously by the board of directors of the firm, the deal is projected to conclude in the second quarter of 2025 depending on regulatory clearances and usual closing conditions.After completion, SolarWinds will be a privately owned corporation with non-listed New York Stock Exchange shares. The business will keep its headquarters in Austin, Texas, and go on under its present name.Using its expertise in developing software companies, Turn/River Capital's founding and managing partner Dominic Ang said the private equity company seeks to quicken SolarWinds' growth.
The purchase is approved by Thoma Bravo and Silver Lake, who control around 65% of SolarWinds' voting equities, thus a general shareholder vote is not needed.
SolarWinds was advised financially by Goldman Sachs & Co. LLC and Jefferies LLC; legal guidance was supplied by DLA Piper LLP. J.P. Morgan, Barclays, Santander, RBC Capital Markets, Kirkland & Ellis LLP advised Turn/River Capital.Due to the pending acquisition, SolarWinds also said it would not host its previously planned results call for the fourth quarter or full-year 2024. By Feb. 14, the corporation plans to publish its financial results.
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