News Summary
SolarWinds Corporation has announced its acquisition by Turn/River Capital in a $4.4 billion deal, priced at $18.50 per share. The acquisition has received unanimous approval from the board and major stakeholders. While awaiting regulatory approval, the transaction is expected to close in the second quarter of 2025, and SolarWinds will remain headquartered in Austin, Texas. The market responded positively, with shares rising by 22%. This acquisition marks a significant shift for SolarWinds as it transitions into private ownership.
Exciting News from Austin: SolarWinds Finds a New Home with Turn/River Capital!
Big changes are on the way for SolarWinds Corporation as they’ve just made headlines by being acquired by Californian private equity firm, Turn/River Capital, in a whopping $4.4 billion deal! This acquisition, which translates to a purchase price of $18.50 per share in cash, is a pretty sweet deal for shareholders, with the offer sitting at about 35% above SolarWinds’ average closing price.
Unanimous Board Approval
There’s no turning back now—the acquisition has received unanimous approval from the Board of Directors at SolarWinds. Not to be left out, major shareholders, including Thoma Bravo and Silver Lake, are backing this move, as they own a combined total of around 65% of SolarWinds’ stock. Clearly, there’s a lot of faith in this partnership!
What’s Next for SolarWinds?
While the excitement builds, it’s important to note that this deal still awaits the green light from regulatory bodies. The transaction is expected to close in the second quarter of 2025. Once the dust settles, SolarWinds will make the leap into private ownership, leaving its days on the New York Stock Exchange behind. But don’t worry, the company is not going anywhere—the headquarters will remain in Austin, Texas, and it will continue to operate under its familiar name and branding.
Stock Market Reaction
Enhanced Operational Resilience
On the business side, SolarWinds’ President and CEO has expressed excitement over this partnership, with hopes of boosting their operational resilience solutions to new heights. Turn/River Capital’s founder has also given a nod to SolarWinds as a leader in IT management and software solutions, emphasizing their strong position in the technology landscape.
Addressing Past Challenges
Of course, while this acquisition sounds promising, it’s hard to ignore the challenges that SolarWinds has faced in the past, particularly the notorious cyber breach in 2020. This incident had far-reaching implications, resulting in a congressional investigation and even a lawsuit over allegations of inadequate security measures. The breach sparked discussions about cybersecurity risks that returned to the forefront again when the SEC filed charges against the company and one of its executives back in 2023 for downplaying these risks.
A Cycle of Change
Interestingly, this isn’t the first time SolarWinds has changed ownership models. The company was originally taken private back in 2016 for $4.5 billion after first going public in 2009. SolarWinds was founded in Tulsa, Oklahoma, before moving its operations to Austin, where it has firmly established its roots.
Looking Ahead
As the acquisition process unfolds, some changes are already in the works. SolarWinds has decided to cancel its upcoming financial conference call that was scheduled for February 11, 2025, to avoid any confusion during the transition. Results will still be announced a few days later, on February 14, 2025, allowing everyone to catch up on how the company is progressing through this exciting time.
This acquisition marks a pivotal moment for SolarWinds, and it seems that both the company and its new partners are ready to embrace the journey ahead. Keep your eyes peeled, because there are bound to be plenty of exciting updates coming from this dynamic duo in the near future!
Deeper Dive: News & Info About This Topic
HERE Resources
Turn/River Capital Acquires SolarWinds for $4.4 Billion
Additional Resources
- Statesman
- Wikipedia: SolarWinds
- CRN
- Google Search: SolarWinds
- Cybersecurity Dive
- Google Scholar: Cybersecurity
- Bloomberg
- Encyclopedia Britannica: Cybersecurity
- Law360
- Google News: TurnRiver Capital
Author: STAFF HERE AUSTIN WRITER
The AUSTIN STAFF WRITER represents the experienced team at HEREAustinTX.com, your go-to source for actionable local news and information in Austin, Travis County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as SXSW, Austin City Limits Music Festival, Formula 1 United States Grand Prix, and the Austin Film Festival. Our coverage extends to key organizations like the Greater Austin Chamber of Commerce and Visit Austin, plus leading businesses in technology, automotive, and retail that power the local economy such as Dell Technologies, Tesla, and Apple. As part of the broader HERE network, including HERECollegeStation.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
