3 ms·
https://techstrongitsm.com/features/turn-rivers-4-4-billion-acquisition-of-solarwinds-could-signal-more-it-related-deals/ https://techstrongitsm.com/features/tu
by btown 2y ago
https://techstrongitsm.com/features/turn-rivers-4-4-billion-acquisition-of-solarwinds-could-signal-more-it-related-deals/ https://techstrongitsm.com/features/turn-rivers-4-4-billion-... provides more context here: "Turn/River, which specializes in optimizing software companies and cloud-based software-as-service companies, already has investments in cloud-based IT company Paessler and cybersecurity company Tufin."
More generally, this is a leveraged buyout: the acquiring firm uses debt from banks and other sources to pay for most of the acquisition. That debt then becomes the responsibility of the acquired company to service - often pushing the company towards cost-cutting measures and an emphasis on harvesting short-term value from accounts. This is sometimes done in an effective and customer-centric way... but that's not always the case. It's hard to know what the outcome will be here.
- calmbonsai 2y agoFor two classic examples that are literally the subject of business school case studies, see Beatrice Foods (https://en.wikipedia.org/wiki/Beatrice_Foods https://en.wikipedia.org/wiki/Beatrice_Foods) and more recently the conglomerate that is/was Altria (https://en.wikipedia.org/wiki/Altria https://en.wikipedia.org/wiki/Altria).
- BLKNSLVR 2y agoPaessler were purchased in May 2024, and by July 2024 they were moving to a subscription, rather than perpetual licensing model, which came with a 100%-ish price increase. Start the process for a SolarWinds alternative now. https://www.theregister.com/2024/07/05/paessler_brings_in_subscription_licensing/ https://www.theregister.com/2024/07/05/paessler_brings_in_su...