SolarWinds | $SWI Stock | IT Software Firm Seeking to Raise $323 Million in IPO


SolarWinds is planning to go public nearly two years after it was taken private by Silver Lake Group LLC and Thoma Bravo LLC in a $4.5 billion deal.

The company filed for an initial public offering last month with the U.S. Securities and Exchange Commission (SEC). It plans to list its shares on the New York Stock Exchange (NYSE) under the ticker symbol “SWI”.

Morgan Stanley, Goldman Sachs, Credit Suisse, and J.P. Morgan are the underwriters for the offering. BofA Merrill Lynch, Evercore ISI, Barclays, SunTrust Robinson Humphrey, Jefferies, Citigroup, KeyBanc Capital Markets, Macquarie Capital, Nomura, JMP Securities, RBC Capital Markets, Mischler Financial Group, Samuel A. Ramirez, and Robert W. Baird are co-managers.

According to its updated prospectus, SolarWinds wants to raise up to $323 million by selling 25 million shares from selling shareholders and 17 million shares from the company at a price of $17 to $19 per share. Underwriters have also been granted an option to buy an additional 6.3 million shares.

Shares are expected to list during the week of October 15th. SolarWinds will not receive any proceeds from selling shareholder sales. Thoma Bravo and Silver Lake will own 83% of the company, or 80.9% if underwriters exercise overallotment options.

SolarWinds is based in Texas and provides information technology infrastructure management software. It also has a presence in countries such as the Philippines, Ireland, and the Czech Republic among other countries.

Small businesses make the largest share of its 275,000 global customer base. The company generated $728 million in revenue and losses of $83.9 million last year. In fiscal 2016, its revenues totaled to $469 million, while net loss came in at $334 million.

SolarWinds, Inc. Company Profile

SolarWinds, Inc., together with its subsidiaries, designs, develops, markets, sells, and supports enterprise-class information technology (IT) and infrastructure management software to IT and DevOps professionals in various organizations worldwide.

It offers enterprise-class network management products and tools that allow network administrators and other IT professionals to monitor and manage the performance and configuration of their network infrastructure, as well as to collect and analyze the log data for IT operations, security, and compliance management.

It also provides enterprise-class systems and application performance management products, which allows system administrators to monitor and manage the performance of physical and virtual servers, applications, databases, and storage devices; and systems management tools, which allow system administrators to remotely manage computers on their networks, as well as offers access to IT management tools through mobile devices.

Furthermore, it offers User Device Tracker, a network management product that helps network engineers and IT pros to identify the current and past location of a network device.

It primarily serves small-and mid-size businesses; large enterprises; MSPs; and local, state, and federal government entities through direct sales force, as well as distributors and other resellers. The company was founded in 1999 and is headquartered in Austin, Texas. – Bloomberg