SolarWinds has agreed to be taken private by buyout firm Turn/River Capital in a $4.4bn deal that marks the latest indication of a potential rebound in debt-funded acquisitions as borrowing costs ease, according to a report by Reuters.
The deal has already received approval from SolarWinds’ largest shareholders, Thoma Bravo and Silver Lake, which collectively hold around 65% of the company’s voting securities, with shares in the IT management software company, jumping 23% following the announcement. Despite the boost though, SolarWinds’ stock had dropped 35% over the past year, as of its last close.
Under the terms of the agreement, Turn/River Capital will acquire SolarWinds for $18.50 per share in cash, representing a 23.1% premium over its last closing price. The transaction is expected to close in the second quarter of 2025.
According to Reuters calculations, the go-private transaction has an equity value of $3.16bn.
SolarWinds provides IT management software that continuously monitors network performance and detects issues like unexpected traffic spikes, which can cause outages or slowdowns.
