Publicly-traded SolarWinds (NYSE: SWI) announced that it has entered into a definitive agreement to be acquired by private equity firms Silver Lake Partners and Thoma Bravo LLC for $60.10 per share or approximately $4.5 billion in cash. The purchase price represents a 43.5 percent premium to the closing price as of October 8, 2015 (when the company announced that it was exploring strategic alternatives) and translates to 9.5x trailing revenue.
SolarWinds provides hybrid IT infrastructure management software to various customers including Fortune 500 companies, small business, education institutions and government agencies. Government clients include: US Marines, US Army, US Navy, US Air Force, DISA, Department of Health and Human Services, and the State of Texas.
The transaction is expected to close in the first quarter of 2016. JP Mortan Securities LLC is acting as financial advisor, and DLA Piper LLP is serving as legal advisor to SolarWinds. Kirkland & Ellis LLP is serving as legal advisor to Thoma Bravo and Ropes & Gray LLP is serving as legal advisor to Silver Lake.
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