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 CloudsoftwareMSPSolarWinds

Featured

Slideshows

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Reseller News has honoured the leading female front runners of the New Zealand ICT industry at the 2019 Women in ICT Awards (WIICTA) in Auckland. The awards recognised standout individuals across six categories, spanning Entrepreneur, Rising Star, Shining Star, Community, Technical and Achievement. Photos by Gino Demeer.

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA
Reseller News kicks off awards season in 2019 with Judges' Lunch

Reseller News kicks off awards season in 2019 with Judges' Lunch

The 2019 Reseller News Innovation Awards has kicked off with the Judges Lunch in Auckland with 70 judges in the voting panel. The awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors. Photos by Christine Wong.

Reseller News kicks off awards season in 2019 with Judges' Lunch
Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomed 2018 inductees - Chris Simpson, Kendra Ross and Phill Patton - to the third running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing landscape of the technology industry in New Zealand, while outlining ways to attract a new breed of players to the ecosystem. Photos by Gino Demeer.

Reseller News welcomes industry figures for 2019 Hall of Fame lunch
Show Comments