Austin, Texas-based software company SolarWinds Inc. has completed its purchase of Ottawa, Ontario’s N-able Technologies Inc., a provider of remote monitoring and management automation solutions for managed service providers and information technology departments. The acquisition price was $120 million in cash. N-able has been a portfolio investment of U.S. technology-focused private equity firm Accel-KKR since October 2011.
SolarWinds Completes N-able Acquisition
New Business Will Allow SolarWinds to Further Extend Its Unique Business Model and Value Proposition to Reach MSPs and the Growing Small Business Market
AUSTIN, TX–(Marketwired – May 28, 2013) – SolarWinds® (NYSE: SWI), a leading provider of powerful and affordable IT management software, announced today the close of the N-able acquisition, enhancing its remote monitoring and management (RMM) offerings and adding MSP service automation to the range of IT management challenges that the company works to address for the entire IT community — from large enterprises to the growing segment of small businesses who are deploying “light IT” and “no IT” initiatives. SolarWinds acquired N-able for $120 million in cash that was funded from SolarWinds’ existing cash balance.
The acquisition gives SolarWinds a new brand, N-able by SolarWinds, and a robust set of Cloud-based offerings to meet the IT management needs of small businesses — with fewer than 100 employees — through the MSPs and Value-added Resellers they have come to trust.
“As small businesses continue to turn to MSPs and other service providers to support their business-critical IT environments via the Cloud, we believe that we are now well-positioned to extend our unique value proposition to this growing space and support these businesses’ evolving IT management needs. MSPs need a strong partner focused on delivering products that are powerful, affordable, and purpose-built to ensure that they are getting everything that they can out of their IT investments,” said Kevin Thompson, SolarWinds’ President and CEO.
“Over the past 13 years, N-able has developed a set of award-winning MSP-centric tools that have garnered strong recognition from the industry for their depth, breadth, and ease of use. We believe that the strength of the N-able brand, combined with SolarWinds’ unique value proposition and go-to-market model, will allow us to accelerate N-able’s growth and provide tremendous long-term value to managed service providers and the small businesses that they serve.”
N-able was founded in 2000 and is based in Ottawa, Ontario, Canada and currently serves more than 2600 MSPs. Like SolarWinds’ products, N-able’s portfolio is designed to solve the operational tasks MSPs face on a day-to-day basis in managing and securing small businesses’ IT infrastructure via the Cloud.
N-able products will continue to be marketed and sold by N-able via the N-able website and from select channel partners.
For additional perspective on this acquisition, please read the FAQs.
For more information on the expected financial impact of the N-able acquisition, visit SolarWinds Investor Relations site for the replay and transcript of the company’s May 21 investor call.
More information on N-able’s RMM and MSP service automation products is available at www.n-able.com.
This press release contains “forward-looking” statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the ability of SolarWinds to integrate the acquisition and expand its model into the MSP market, the ability of SolarWinds to accelerate N-able’s growth and provide tremendous long-term value to the hundreds of thousands of small businesses served by managed service providers and SolarWinds’ future plans for marketing and selling N-able products . These forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include all statements that are not historical facts and may be identified by terms such as “will,” “plans,” “believes,” “intends” or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the following: (a) the possibility that general economic conditions or uncertainty cause information technology spending to be reduced or purchasing decisions to be delayed; (b) the inability to increase sales to existing customers and to attract new customers; (c) SolarWinds’ failure to integrate acquired businesses and any future acquisitions successfully; (d) the timing and success of new product introductions by SolarWinds or its competitors; (e) changes in SolarWinds’ pricing policies or those of its competitors; and (f) such other risks and uncertainties described more fully in documents filed with or furnished to the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2013 filed on February 19, 2013. All information provided in this release is as of the date hereof and SolarWinds undertakes no duty to update this information except as required by law.
SolarWinds (NYSE: SWI) provides powerful and affordable IT management software to customers worldwide — from Fortune 500 enterprises to small businesses. We work to put our users first and remove the obstacles that have become “status quo” in traditional enterprise software. SolarWinds products are downloadable, easy to use and maintain, and provide the power, scale, and flexibility needed to address users’ management priorities. Our online user community, thwack, is a gathering-place where tens of thousands of IT pros solve problems, share technology, and participate in product development for all of SolarWinds’ products. Learn more today at http://www.solarwinds.com. SolarWinds and SolarWinds.com are registered trademarks of SolarWinds. All other company and product names mentioned are used only for identification purposes and may be trademarks or registered trademarks of their respective companies.
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