IT management software vendor SolarWinds has begun the spin-off of a slice of security, automation, and backup offerings targeting managed services providers (MSPs) as a standalone vendor — N-able.
The US-based vendor expects the spin-off to complete from 19 July, according to its investor announcement.
“N-able will provide cloud-based software solutions for MSPs, enabling them to support digital transformation and growth within SMEs,” says SolarWinds, which will focus primarily on large corporates.
“N-able common stock will trade on the New York Stock Exchange under the symbol NABL.”
The new N-able stock is expected to begin ‘when issued’ trading around 9 July, with regular trading starting 20 July.
Current SolarWinds shareholders will receive some N-able stock on 12 July, free of US taxes, at the rate of one N-able share for every two SolarWinds shares, with tax-liable cash in lieu for the remainder.
“SolarWinds shareholders should consult with their tax advisors with respect to the US federal, state, local and foreign tax consequences of the separation,” the vendor says.
Subject to completion of the spin-off, an indirect subsidiary of N-able is expected to receive $410m of secured credit comprising a $60m revolving credit facility and $350m loan from JPMorgan Chase. Net proceeds will pay intercompany debts, with anything left over distributed to N-able and SolarWinds’ holding company.
“The exact amount of excess loan proceeds is currently estimated to be an amount equal to approximately $20m,” says SolarWinds.
SolarWinds targets IT infrastructure management requirements with a view to managing all kinds of IT environments and serving IT operations professionals tasked with maintaining performance and availability.