IT management software company SolarWinds (NYSE: SWI) said Thursday it has reached an agreement to buy privately held Samanage, an IT service desk solution company.
The deal is for $350 million in cash or approximately $329 million net of cash acquired, SolarWinds said in a press release, adding that it plans to fund the transaction primarily with its existing cash balance.
The Samanage products will be added to SolarWinds' IT operations management portfolio in the second quarter of this year, according to Thursday's announcement.
"The Saas-based offering will complement the on-premise products the company offers today to serve the needs of IT organizations at businesses of all sizes — from the SMB to the large enterprise."
Why It's Important
IT service management is a $6-billion-plus market and is projected to hit $8.5 billion by 2023, SolarWinds said.
Doron Gordon, the founder and CEO of Samanage, said in a statement that IT departments are increasingly at the center of employee service and digital business transformation.
"We are excited about the opportunity to bring our products together with the reach and strength of SolarWinds to enable IT organizations in companies of all sizes to achieve better business outcomes."
The acquisition is expected to close before the end of the second quarter, SolarWinds said. The company plans to provide more details on the deal — and its financial impact — on its first-quarter call April 24.
SolarWinds shares were trading down slightly at $18.98 at the time of publication.
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