10:59 AM EST, 02/07/2025 (MT Newswires) -- SolarWinds ( SWI ) said Friday that the technology infrastructure company agreed to be acquired by private equity firm Turn/River Capital in an all-cash deal worth about $4.4 billion.

SolarWinds ( SWI ) shareholders will receive $18.50 a share in cash, reflecting a 35% premium to the 90-day average share price as of Thursday, the company said. Upon completion, SolarWinds ( SWI ) will become a private company and cease to trade on the New York Stock Exchange.

"We have built a great track record of helping customers accelerate business transformations through simple, powerful, secure solutions designed for hybrid and multi-cloud environments," SolarWinds ( SWI ) Chief Executive Sudhakar Ramakrishna said in a statement. "We now look forward to partnering with Turn/River to deliver operational resilience solutions for our customers on our SolarWinds ( SWI ) platform, leveraging our premier observability, monitoring, and service desk solutions."

SolarWinds' ( SWI ) shares soared 23% in Friday trading.

The transaction is expected to close in the second quarter, subject to regulatory clearance. It has already received approvals from Thoma Bravo and Silver Lake, who collectively own a stake of about 65% in SolarWinds ( SWI ). Following deal completion, SolarWinds ( SWI ) will retain its name.

Wedbush Securities said in a Friday note that SolarWinds ( SWI ) has been able to "generate solid margin expansion and strong free cash flow metrics despite paying down its debt balance aggressively over the past few years."

"We believe this was a solid move for both entities as both mission statements are closely aligned in accelerating digital transformation strategies with the acquisition expected to be completed this year," Wedbush said.

The brokerage downgraded the stock to neutral from outperform and cut its price target to $18.50 from $20, reflecting the acquisition price.

In February 2016, SolarWinds ( SWI ) became a private company as Silver Lake Partners and Thoma Bravo completed their $4.5 billion acquisition. However, it returned to public markets in 2018.

"By pairing our team of software operators and investors with their relentless focus on customer success, together we aim to accelerate growth and further innovation," Turn/River Capital Managing Partner Dominic Ang said in the statement.

Price: 18.51, Change: +3.48, Percent Change: +23.12