SolarWinds Announces Potential Pricing for IPO

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Solar Winds has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). The company intends to list 42.0 million shares in the range of $17 to $19 apiece, with an overallotment option for an additional 6.3 million shares. At the maximum value, the entire offering is valued up to $917.7 million. The company intends to list its shares on the New York Stock Exchange under the symbol SWI.

The underwriters for the offering are Goldman Sachs, JPMorgan, Morgan Stanley, Credit Suisse, Merrill Lynch, Barclays, Citigroup, Evercore ISI, Jefferies, Macquarie Capital, Nomura, RBC Capital Markets, Baird, JMP Securities, Keybanc, Mischler Financial Group, Ramirez and SunTrust Robinson Humphrey.

This company is a leading provider of information technology (IT) infrastructure management software. Its products give organizations worldwide, regardless of type, size or IT infrastructure complexity, the power to monitor and manage the performance of their IT environments, whether on-premise, in the cloud or in hybrid models. The firm combines powerful, scalable, affordable, easy to use products with a high-velocity, low-touch sales model to grow its business while also generating significant cash flow.

Overall, the business is focused on building products that enable technology professionals to manage “all things IT.” It continuously engages with technology professionals to understand the challenges they face maintaining high-performing and highly available on-premise, public and private cloud and hybrid IT infrastructures. The insights SolarWinds gains from engaging with technology professionals allow it to build products that solve well-understood IT management challenges in ways that technology professionals want them solved.

At the end of the 2017 September quarter, the company said that it had $189.11 million in revenue, with $40.49 million coming from licensing and $148.62 million the result of recurring revenue from subscription and maintenance. The company expects to see total revenue in the range of $211.78 million to $212.78 million at the end of the 2018 September quarter.

SolarWinds intends to use the net proceeds from this offering to pay down its debt. The remainder will be put toward working capital and general corporate purposes.