News Summary

  • SolarWinds announced on Wednesday that it has promoted finance veteran Tim Karaca to Chief Financial Officer (CFO).
  • Karaca previously served as Group Vice President of Strategic Finance and Investor Relations at SolarWinds for three years, with the new appointment taking effect on June 16.
  • The finance leadership change comes as the Austin, Texas-based IT management software provider faces a lawsuit from the U.S. Securities and Exchange Commission (SEC) over its significant cybersecurity breach in 2020.

In-Depth Analysis

SolarWinds announced on Wednesday that it has promoted finance veteran Tim Karaca to CFO, effective June 16. Karaca previously served as Group Vice President of Strategic Finance and Investor Relations at SolarWinds for three years, succeeding Lewis Black in the role. Black, who became CFO after Kalsu resigned, is now "stepping down from the role, having led the company through significant achievements," a spokesperson said in an email.

The finance leadership change comes as the company deals with the SEC lawsuit. In 2023, the SEC sued SolarWinds and its Chief Information Security Officer Timothy Brown, alleging they made false statements about the company's cybersecurity practices before the 2020 breach, misleading investors. During the SEC investigation, Brown and then-CFO J. Barton Kalsu were both informed they might face charges, but Kalsu was ultimately not named in the lawsuit.

In June 2024, SolarWinds announced Kalsu's resignation to "explore other career opportunities outside the company." Lewis Black, whom Karaca succeeds, became CFO after Kalsu's resignation.

Before joining SolarWinds, Karaca held leadership roles at AIG, Microsoft, and Bridgewater Associates.

"Tim's proven strengths in strategy, capital allocation, and operational discipline are critical to our growth-oriented partnership with Turn/River Capital," said SolarWinds CEO Sudhakar Ramakrishna in a press release on Wednesday. "As we begin our next chapter, there is no one better suited to serve as Chief Financial Officer."

The transition also comes less than two months after the company completed its privatization through the $4.4 billion acquisition by Turn/River Capital.