SolarWinds reports that it has entered into a definitive agreement to be acquired by Turn/River Capital.
This is an all-cash transaction of $18.50 per share, with a total value of approximately $4.4 billion. The price per share represents a premium of about 35% to the volume-weighted average closing price of SolarWinds shares over a 90-day trading period ending Feb. 6, 2025.
Attack by hackers
In 2020, SolarWinds was in the news extensively following a large-scale cyber attack. In this attack, hackers compromised software updates to the management platform SolarWinds Orion, enabling criminals to gain access to the networks of thousands of companies and government agencies.
The attack was attributed to a Russian group called APT29 (also known as Cozy Bear). The group is believed to have ties to Russian intelligence services.
Broader range of innovations
Sudhakar Ramakrishna, the CEO and president of SolarWinds, expects the deal to offer partners and customers a wider range of innovations within the SolarWinds platform. This is in addition to an even greater focus on customer success to help users navigate the complexities of today’s hybrid and multi-cloud environments. He states that with the support of Turn/River, his company can further expand its vision for operational resilience.
SolarWinds’ Board of Directors unanimously approved the transaction. Thoma Bravo and Silver Lake, SolarWinds’ majority shareholders, also voted in favor. Together, they own approximately 65% of the company’s outstanding voting securities.
Upon completion of the transaction, SolarWinds’ common stock will no longer be traded on the New York Stock Exchange. SolarWinds will then be a privately held company. The company will continue to operate under the SolarWinds name and brand after the acquisition, and the location of its headquarters, Austin, will not change.
SolarWinds plans to report financial results for the fourth quarter and full year 2024 by Feb. 14, 2025.