IT management software company SolarWinds announced on Wednesday that it will be acquired by private equity firms Silver Lake Partners and Thoma Bravo.
Under the agreement, SolarWinds stockholders will receive $60.10 per share, or approximately $4.5 billion in cash. The agreement was approved by SolarWinds' board following a comprehensive review of strategic alternatives.
Trading in SolarWinds was briefly halted after the news, but the stock later popped more than 16 percent after resuming trade.
"This transaction recognizes the strength of our unique business model and provides our shareholders with immediate and substantial cash value at a compelling premium," SolarWinds CEO Kevin B. Thompson said in a statement.