SolarWinds to Go Private in $4.4 Billion Deal
SolarWinds, the Austin-based IT management software provider, has announced an agreement to be acquired by private equity firm Turn/River Capital in an all-cash transaction valued at approximately $4.4 billion. Under the terms of the deal, Turn/River Capital will pay SolarWinds shareholders $18.50 per share, representing a significant premium over the company's recent trading prices. The transaction has received unanimous approval from SolarWinds' board of directors and is expected to close in the second quarter of 2025, subject to customary closing conditions and regulatory approvals.
Upon completion of the transaction, SolarWinds will become a privately held company and will no longer be listed on the New York Stock Exchange. The company plans to continue operating under the SolarWinds name and maintain its headquarters in Austin, Texas. SolarWinds' President and CEO, Sudhakar Ramakrishna, expressed optimism about the partnership, stating that it will enable the company to accelerate innovation and deliver greater value to customers and stakeholders.
This move comes after a challenging period for SolarWinds, which faced a significant supply chain cyberattack in 2020 that impacted thousands of organizations, including U.S. government agencies. The breach led to increased scrutiny of the company's cybersecurity practices and subsequent legal challenges. Despite these hurdles, SolarWinds has continued to develop and provide IT management and observability solutions to a global customer base.
The acquisition by Turn/River Capital reflects a broader trend of private equity firms investing in software companies with strong enterprise customer bases and recurring revenue streams. By taking SolarWinds private, Turn/River Capital aims to leverage its expertise to drive growth and innovation within the company, focusing on delivering operational resilience solutions for customers across hybrid and multi-cloud environments.
As the deal progresses toward finalization, industry observers will be watching closely to see how SolarWinds navigates this transition and what strategic initiatives emerge under its new ownership. The partnership with Turn/River Capital presents an opportunity for SolarWinds to strengthen its market position and enhance its offerings in the competitive IT management landscape.