Form 4: SolarWinds Director Dennis Howard Disposes of Shares in Merger

Director Dennis Howard reports the disposal of 92,055 shares of SolarWinds Corp common stock at $18.50 per share due to the merger with Starlight Merger Sub, Inc.

Summary

• Dennis Howard, a director of SolarWinds Corp, reported a transaction on April 16, 2025, involving the disposal of 92,055 shares of common stock.
• The disposal occurred due to the merger between Starlight Merger Sub, Inc. and SolarWinds, with SolarWinds surviving as a wholly-owned subsidiary of Starlight Parent, LLC.
• As a result of the merger, each outstanding share of SolarWinds' common stock was converted into the right to receive $18.50 in cash.
• The transaction was executed pursuant to the Agreement and Plan of Merger dated February 7, 2025.

Sentiment

Score: 6

Explanation: Neutral sentiment as the document simply reports a transaction resulting from a previously announced merger. There are no indications of positive or negative surprises.

Future Outlook

The document does not contain any specific forward-looking statements beyond the completion of the merger.

Industry Context

This announcement reflects a trend of mergers and acquisitions within the technology sector, where companies are often acquired to enhance market position or technological capabilities. Private equity firms such as Thoma Bravo and Silver Lake Partners have been active in acquiring software companies, similar to the Starlight Parent, LLC acquisition of SolarWinds.

Comparison to Industry Standards

• The acquisition of SolarWinds at $18.50 per share can be compared to other private equity acquisitions in the software space.
• For example, Vista Equity Partners' acquisition of Tibco Software in 2014 for approximately $4.3 billion, or Thoma Bravo's acquisition of Qlik in 2016 for around $3 billion, serve as benchmarks for evaluating the deal's valuation.
• These deals often involve a premium over the existing market price, reflecting the strategic value and potential synergies identified by the acquiring firm.

Stakeholder Impact

• Shareholders received $18.50 per share in cash as a result of the merger.
• SolarWinds became a wholly-owned subsidiary of Starlight Parent, LLC, potentially impacting its operational and strategic direction.

Key Dates

Keywords

Merger, SolarWinds, Director, Form 4, Share Disposal, Dennis Howard, Starlight Parent, Starlight Merger Sub, SWI