SolarWinds pays $103 million for Colorado software company [Austin American-Statesman]
(Austin American-Statesman (TX) Via Acquire Media NewsEdge) Oct. 08--Continuing its acquisition streak, Austin-based software maker SolarWinds has purchased a Colorado software company for $103 million.
SolarWinds, which sells network management software, said it paid cash for Boulder-based Confio Software.
The deal is the 13th acquisition SolarWinds has made since 2009. Its last purchase was Canadian software company N-able, which sells cloud-based remote monitoring, management and service automation software. Under the deal, which was announced in May, SolarWinds paid $120 million in cash.
SolarWinds' software is used by information technology professionals to configure, monitor and report on the health and performance of their network, systems and applications.
The company has more than 90,000 customers in more than 170 countries including corporations, the military, government agencies and educational institutions. SolarWinds has more than 900 employees worldwide, including about 350 in Austin.
Confio was founded in 2004 and sells database performance management software. The company has 1,200 customers.
"In 2011, SolarWinds embarked on a strategic initiative to extend our product portfolio to address the specific needs of today's systems administrators," said Kevin Thompson, SolarWinds CEO. "The addition of Confio to the SolarWinds family provides a critical element to round out our product portfolio."
In July, SolarWinds reported second-quarter income of $22.8 million on revenue of $77.5 million compared with an income of $19.4 million on revenue of $64 million.
Although revenue increased 21 percent from the second quarter a year ago, it fell short of market expectations. Shares fell 22 percent to close at $35.86.
SolarWinds subsequently announced it would buy back as much as $50 million of its own shares.
On Tuesday, shares closed at $33.84, down 1.8 percent.
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