SolarWinds has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). The company now intends to list 25.0 million shares in the range of $15 to $16 apiece, with an overallotment option for an additional 3.75 million shares. At the maximum value, the entire offering is valued up to $460.0 million. The company intends to list its shares on the New York Stock Exchange under the symbol SWI.
Note that in the previous filing, the company was planning to offer 42.0 million shares in the range of $17 to $19 per share, with an overallotment option for an additional 6.3 million shares. The offering would have a maximum value of $917.7 million, practically double the new valuation.
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.
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
