SolarWinds Goes Private: What Its Acquisition Means for the Observability Market

As the lead administrator and primary supporter of SolarWinds at my MSP and technology company, Spectrotel, as well as a SolarWinds THWACK MVP, I have worked extensively with the platform for many years. Given my experience, I find it essential to discuss the recent acquisition of SolarWinds by private equity firm Turn/River Capital and what it means for the observability market and businesses worldwide.

In February 2025, SolarWinds, a leading provider of observability and IT management software, announced its acquisition by Turn/River Capital in an all-cash deal valued at approximately $4.4 billion. The acquisition, which offers shareholders $18.50 per share, represents a 35% premium over the company’s 90-day volume-weighted average stock price. Upon completion, SolarWinds will transition into a privately held company, continuing to operate under the same name with headquarters in Austin, Texas.

Source: SolarWinds Investor Relations

Impact on the Observability Market

The observability sector has seen significant growth, fueled by the increasing complexity of IT infrastructures and the need for comprehensive monitoring solutions. Investors have been actively pursuing opportunities in this space, as demonstrated by Cisco’s $28 billion acquisition of Splunk, underscoring the growing value and demand for observability platforms.

SolarWinds' move to go private is part of a broader trend where private equity firms invest in observability and IT management companies. These acquisitions often focus on:

• Streamlining operations

• Fostering innovation

• Driving long-term growth outside the pressures of public markets

While this could lead to stronger, more integrated solutions, it also raises questions about market consolidation and potential shifts in strategic direction.

Source: InformationWeek

Potential Strategy Shifts for SolarWinds

Will SolarWinds continue its existing product roadmap?

• Private equity firms often restructure or pivot to increase profitability.

• Could we see more integrations, acquisitions, or divestitures of certain product lines?

Pricing and Licensing Changes

• Many private equity-backed companies adjust pricing models to boost revenue.

• Could this lead to higher costs, subscription model shifts, or reduced support for legacy products?

Security Considerations Post-Acquisition

Lessons from the SolarWinds 2020 cyberattack

• Does the acquisition increase or decrease security investment?

• Will Turn/River Capital prioritize cybersecurity improvements, given SolarWinds’ history?

• How will private ownership impact transparency in security practices?

Regulatory & Compliance Changes

• Will government agencies and enterprises feel comfortable continuing their use of SolarWinds under private equity ownership?

• Could this acquisition impact contracts with large federal clients or trigger new compliance requirements?

Impact on SolarWinds' Open-Source & THWACK Community

Future of THWACK MVPs & Community Engagement

• Will Turn/River Capital invest in or scale back community-driven support & engagement?

• How will longtime users & MVPs be affected?

  
  

SolarWinds Open Source & API Support

• Will SolarWinds continue supporting custom integrations, open-source monitoring tools, and API accessibility?

• Some private equity firms restrict third-party extensions—will that happen here?

Broader Industry Trends & Competitor Reactions

What does this mean for other observability players?

• Splunk (acquired by Cisco), Datadog, Dynatrace, and New Relic—how might they respond?

• Will we see more mergers & acquisitions in the IT management space?

Does private ownership make SolarWinds a stronger competitor or a riskier bet?

• Will enterprises trust a private equity-controlled SolarWinds, or shift toward more publicly traded competitors?

Global Implications for Companies

For organizations worldwide, this acquisition could bring both opportunities and risks:

Enhanced Product Offerings

• Private equity funding could accelerate product innovation and lead to more comprehensive observability solutions for customers.

Operational Stability

• As a private company, SolarWinds may prioritize long-term strategic goals without the constant pressure of quarterly earnings reports.

Market Consolidation

• The trend of private equity-backed acquisitions could reshape the competitive landscape, influencing vendor selection and pricing models.

Potential Challenges

• Restructuring and shifting priorities could impact customer support, product roadmaps, and licensing models.

• Businesses relying on SolarWinds must closely monitor any strategic shifts that could affect their IT management processes.

My Final Thoughts

The SolarWinds acquisition is a significant development in the observability and IT management space. While it has the potential to drive innovation and growth, it also raises concerns about consolidation and long-term strategic changes.

As a longtime SolarWinds user and THWACK MVP, I will continue to monitor these changes closely, keeping our organization and the broader IT community informed about how this shift impacts SolarWinds customers, product direction, and the observability market as a whole.

What are your thoughts on this acquisition? Do you think going private will benefit SolarWinds and its customers?