SolarWinds Stock (SWI): History, Delisting, and Privatization
Overview of SolarWinds Corporation
SolarWinds Corporation, formerly traded as solarwinds stock under the ticker SWI on the New York Stock Exchange (NYSE), is a major American software provider. Based in Austin, Texas, the company specializes in observability and IT management software designed to monitor networks, systems, and infrastructure. As of April 2025, following a major acquisition, the company transitioned from a public entity to a privately held organization.
Financial History and Stock Performance
Initial Public Offering (IPO)
SolarWinds had a significant presence in the public markets. Its most recent stint as a public company began with an IPO that sought to capitalize on the growing demand for Software-as-a-Service (SaaS) and IT infrastructure management tools. At its peak, the company was valued as a multi-billion dollar enterprise, attracting significant interest from institutional investors.
Historical Price Trends
The price action of solarwinds stock was characterized by steady growth driven by its subscription-based revenue model. However, the stock experienced periods of extreme volatility. Historical data shows a 52-week trading range between $10.14 and $18.55 prior to its privatization. Investors often looked to its Enterprise Value (EV) and P/E ratios to gauge its health against other tech giants.
Dividend Policy
Before its delisting, SolarWinds was notable among software firms for its dividend policy. The company provided regular dividend payments, offering a yield that appealed to value-oriented investors in the technology sector. This practice distinguished it from many high-growth SaaS companies that typically reinvest all profits into research and development.
Major Market Events
The 2020 SUNBURST Cyberattack Impact
One of the most critical events in the history of solarwinds stock was the discovery of the SUNBURST supply-chain breach in December 2020. Hackers compromised the company’s Orion platform, affecting numerous government agencies and Fortune 500 companies. This event led to a sharp decline in share price, triggered SEC investigations, and resulted in multiple shareholder class-action lawsuits regarding cybersecurity oversight.
2025 Acquisition and Privatization
According to reports as of early 2025, SolarWinds entered into a definitive agreement to be acquired by Turn/River Capital. The deal, valued at approximately $4.4 billion, offered shareholders $18.50 per share in cash. This transaction marked the end of SWI as a publicly-traded security, with the official delisting from the NYSE completed in April 2025. This move allows the company to focus on long-term strategy away from the quarterly scrutiny of public markets.
Corporate Fundamentals
Business Model and Revenue Streams
The company generates revenue primarily through subscription fees and maintenance contracts for its observability and IT service management (ITSM) platforms. By shifting toward a subscription-heavy model, SolarWinds aimed to create predictable, recurring cash flows, which eventually made it an attractive target for private equity firms.
Market Position and Competitors
SolarWinds maintains a strong position in the IT monitoring space. It competes directly with major players such as Microsoft, Oracle, and Datadog. While it faced reputational challenges following 2020, its deep integration into corporate IT environments remains a key competitive moat.
Analyst Coverage and Institutional Ownership
Prior to its acquisition, solarwinds stock was closely watched by major financial institutions. Firms like J.P. Morgan, Goldman Sachs, and Wedbush provided regular ratings, often oscillating between "Hold" and "Buy" as the company recovered from its security breach. Institutional ownership was high, with significant stakes held by private equity firms like Silver Lake and Thoma Bravo before the final buyout by Turn/River Capital.
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