Austin-based IT software company SolarWinds Corp (NYSE:SWI), controlled by Silver Lake Management and Thoma Bravo, is contemplating a sale amidst ongoing efforts to rebuild trust following a significant cyberattack in 2020. The company has announced plans to initiate a sales process in early 2024, according to information released today.
The decision to consider a sale comes after the cyberattack, attributed to Russian hackers, compromised the data of 18,000 customers and sparked a US inquiry into a government email breach involving Microsoft (NASDAQ:MSFT). This event exposed vulnerabilities in SolarWinds' software and led to the infiltration of numerous government entities and private firms.
In response to these challenges, SolarWinds is working on enhancing its security measures. The company has enlisted financial advisers for the upcoming sales process.
SolarWinds' shares have seen a significant drop of 44% since its IPO in 2018, including a further decline of 5% this year. However, today, SWI shares saw a 6.6%. This increase was supported by Q2 FY23 revenue growth of 5% YoY to $185 million and an adjusted EPS of $0.21, both exceeding consensus estimates.
Looking ahead, SolarWinds anticipates FY23 revenue between $740-748 million and non-GAAP EPS of $0.76-$0.79. The company's majority stakeholders, Silver Lake and Thoma Bravo, who hold a 68% stake, are keen to restore customer confidence as they navigate these changes.
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