SolarWinds to Explore Strategic Alternatives
October 09 2015 - 1:40PM
Dow Jones News
SolarWinds Inc. said Friday it is exploring alternatives after
being approached by an interested third party.
Shares of the company climbed 12% to $47 after the news was
announced.
The company said a board review could lead to it pursuing a sale
of the company, profit-enhancing measures on its own or another
type of deal.
It said no decisions have been made to strike any deals at this
time, and that there is no guarantee the review of alternatives
will result in any deal.
SolarWinds makes software that businesses use to manage and
improve the performance of their data networks. The Austin, Texas,
software provider's market value was $3.2 billion according to
Thursday's closing price of $41.88.
SolarWinds said there is no set timetable for the board's
review, and it doesn't expect to make further public comment unless
the board approves a specific action or ends its review.
The board has retained J.P. Morgan as its financial adviser and
DLA Piper LLP as its legal adviser for the review.
Even with Friday's stock bump, shares of SolarWinds are still
down 5.5% so far this year.
Daniel Ives, an FBR & Co. analyst, called the strategic
review a "potentially rosy scenario for investors that have stuck
with the company through its rollercoaster ride, especially over
the past year as SolarWinds has run into some execution speed
bumps."
He said private equity would be the main bidder for the
company's business, and that SolarWinds is starting to see a
rebound from a soft second-quarter performance and should be poised
to see some seasonal strength in the second half of the year.
SolarWinds has posted consistent sales growth over the past
several quarters. It announced Wednesday updates to its remote IT
administration and support software, DameWare Remote Support, which
extend its over-the-Internet remote-session capabilities.
Write to Anne Steele at anne.steele@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 09, 2015 13:25 ET (17:25 GMT)
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