The experts are debating why N-Able stock tumbled 12.6% on Tuesday. Last December, SolarWinds filed with the SEC to spin off N-Able, however the company did make an announcement about the possible spin-off back in August 2020. Is it possible that the spin off would allow N-Able software business to put some distance from the SolarWinds cyber security breach or maybe it was just a coincidence. I doubt that anyone could have predicted the breach back in August so it is most likely just timing.
The company reported second quarter financial results of $260.8 million (an increase of 6%). About $85 million came from N-Able.
It’s early days to know where its headed, but there was an announcement of $225 million in cash to N-Able from private investors so it looks like the future is bright for N-Able (in new purple branding).
Most channel partners know and use N-Able’s RMM solutions. It looks like N-Able will be beefing up that presence in the channel and coming out with a few more surprises. I do not see this affecting the channel negatively. To the contrary, this looks like great news for the channel community.
N-Able was originally a Canadian company that was purchased by SolarWinds. There is a buzz about if the spin-off had anything to do with the SolarWinds breach, but regardless of what you believe, it seems to make a case that putting everything under one roof in any company, may not be the best idea. We will see.