SolarWinds Said to Draw Interest From Hellman & Friedman, Vista

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  • Thoma Bravo also said to explore bid for software company
  • SolarWinds climbs 12% in New York, biggest gain in a year

SolarWinds Inc., a maker of network-management software, has been approached about a buyout of the company by firms including Hellman & Friedman, Vista Equity Partners and Thoma Bravo, people with knowledge of the matter said.

The private-equity firms each have approached banks about financing a deal to take the company private, said the people, who asked not to be identified because the information hasn’t been made public. Final bids are due later this month, one of the people said.

SolarWinds had a market capitalization of about $3.2 billion based on Thursday’s closing share price. The Austin, Texas-based company is working with JPMorgan Chase & Co. to review options including a sale, according to a statement Friday.

It would be the latest in a series of technology companies to draw interest from buyout firms. Last month, Vista said it agreed to buy Solera Holdings Inc., which sells risk-management software to investors, for $6.5 billion including net debt. Peer CDK Global Inc., spun off from Automatic Data Processing Inc. last year, is exploring a sale and accepting expressions of interest from private-equity firms after drawing unsolicited interest, people familiar with the situation said last month.

SolarWinds, which went public in 2009, produces a range of IT software for businesses including database management and security and compliance, according to its website. The shares rose 12 percent to $46.72 as of 1:21 p.m. in New York, the biggest intraday gain since October 2014.

Representatives for SolarWinds and Hellman & Friedman declined to comment. Spokesmen for Vista and Thoma Bravo didn’t immediately respond to e-mail requests for comment.

Reuters previously reported that the company is in talks with several private-equity firms about a possible leveraged buyout, without naming them.