Private Equity Firm Turn/River Capital Buying SolarWinds for $4.4 BillionPrivate Equity Firm Turn/River Capital Buying SolarWinds for $4.4 Billion

Observability and IT management software provider SolarWinds will be acquired by private equity firm Turn/River Capital for an estimated $4.4 billion.

The IT company announced the agreement on Friday. According to CEO Sudhakar Ramakrishna, selling to Turn/River Capital will allow it to expand its vision and strengthen its infrastructure. Expect the deal to close in the second quarter once it gets regulatory approval. SolarWinds will continue to operate independently until then, and customers should not expect to see a change in business in the meantime, the companies said.

SolarWinds' Sudhakar Ramakrishna

"For our customers and partners, [this means] a broader set of SolarWinds platform innovations and an even greater focus on customer success to help navigate the complexities of today's hybrid and multicloud environments," Ramakrishna wrote in a blog. "With Turn/River's backing, we can expand our vision around operational resilience, ensuring that your IT infrastructure remains robust and reliable in the face of increasing Cloud and AI technology demands. Our steadfast focus is delivering exceptional products and experiences that empower your success."

What Turn/River Brings to SolarWinds

Wall Street reacted very positively to the news. SolarWinds stock price (SWI) was up nearly 23% as of 11:42 a.m. ET on Friday.

Related:SolarWinds Attack Has Growing, Worsening Impact on Cybersecurity Pros

Turn/River Capital's Dominic Ang

"SolarWinds is a global leader in software that helps a wide range of businesses securely manage and optimize their systems, networks and IT infrastructure. Their deep commitment to understanding and solving customer needs has led to decades of innovation, impact and consistent growth,” said Dominic Ang, founder and managing partner of Turn/River Capital. “We are incredibly excited to partner with SolarWinds. By pairing our team of software operators and investors with their relentless focus on customer success, together we aim to accelerate growth and further innovation.”

Turn/River has a major stake in many tech companies, including firewall management software company Tufin and Germany-based network management software giant Paessler.

SolarWinds unveiled new updates to its partner program on Feb. 4, including new tools and a focus on increasing partner profit. It also received multiple certifications that expand its customer relationship with the Department of Defense.

SolarWinds is now more than four years removed from one of the most impactful hacks in U.S. history. Tied to a group of bad actors that many believe were connected to the Russian government, it targeted a number of large corporations and government agencies. The malicious hackers got in through a backdoor in SolarWinds' Orion software.

Related:SolarWinds Partners Getting New Benefits