Menu
SolarWinds goes full circle, files for $500M IPO

SolarWinds goes full circle, files for $500M IPO

Move represents complete turnaround for the privately-held business

Credit: Dreamstime

SolarWinds has filed for an initial public offering (IPO) with plans to sell up to US$500 million worth of shares, three years after the software provider was taken private.

The move represents a complete turnaround for the business, following its acquisition by private equity specialists Silver Lake Partners and Thoma Bravo in October 2015, in a deal worth US$4.5 billion.

At the time, the buyout - which closed in February 2016 - resulted in SolarWinds ceasing trading on the New York Stock Exchange, in a move designed to provide “greater flexibility” to execute on the vendor’s “long-term strategy”.

Fast forward almost three years and a return to the public market is on the cards, under the company’s old symbol of SWI.

“Today, we are a very different company than we were in early 2016,” a company registration statement read.

“While we have remained a leading provider of network management software and remote management and monitoring software for MSPs, we believe our addressable market opportunity is much larger with our recent product additions.”

According to filing documents, SolarWinds works with more than 275,000 customers across 190 countries, leveraging an ecosystem of more than 22,000 managed service providers (MSPs) in the process.

“We have grown our product offerings through organic development and acquisitions of businesses and technologies and have focused on offering more subscription-based products that make our business even more visible and predictable as sales of those products scale,” the statement added.

“We now provide full IT management capabilities across over 50 products that span on-premise, cloud and hybrid IT environments and empower technology professionals to manage their IT environments in ways that we believe distinguish us from our competitors.”

After launching in 1999, SolarWinds went public in 2009, as a point provider of on-premise network management products.

Upon going private however, the vendor branched out into the cloud and MSP markets, growing product offerings and expanding market reach through “organic product development and targeted acquisitions”, while at the same time continuing to invest in on-premise IT management solutions.

As reported by ARN, key acquisitions during this period included the purchase of Trusted Metrics in July 2018, alongside LogicNow in June 2016.

“We extend our sales reach through our MSP customers, who provide IT management as a service and rely on our products to manage and monitor the IT environments of their end customers,” the statement read.

“Our MSP customer base enables us to reach across a fragmented end market opportunity of millions of organisations and access a broader universe of customers.

“We benefit from the addition of end customers served by our MSP customers, the proliferation of devices managed by those MSPs and the expansion of products used by those MSPs to manage end customers’ IT infrastructures.”

From a financial standpoint, SolarWinds recorded revenues of US$398.6 million for the six months ended 30 June, up from US$340 million the year previous.

Meanwhile, the vendor’s net loss widened to US$86.9 million from the previous year loss of US$45.7 million, while operating income increased to US$44.1 million from US$13.9 million.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags CloudsoftwareSolarWinds

Events

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments