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SolarWinds Inc. said Friday it is exploring alternatives after being approached by an interested third party.

Shares of the company climbed 12% to $47 after the news was announced.

The company said a board review could lead to it pursuing a sale of the company, profit-enhancing measures on its own or another type of deal.

It said no decisions have been made to strike any deals at this time, and that there is no guarantee the review of alternatives will result in any deal.

SolarWinds makes software that businesses use to manage and improve the performance of their data networks. The Austin, Texas, software provider's market value was $3.2 billion according to Thursday's closing price of $41.88.

SolarWinds said there is no set timetable for the board's review, and it doesn't expect to make further public comment unless the board approves a specific action or ends its review.

The board has retained J.P. Morgan as its financial adviser and DLA Piper LLP as its legal adviser for the review.

Even with Friday's stock bump, shares of SolarWinds are still down 5.5% so far this year.

Daniel Ives, an FBR & Co. analyst, called the strategic review a "potentially rosy scenario for investors that have stuck with the company through its rollercoaster ride, especially over the past year as SolarWinds has run into some execution speed bumps."

He said private equity would be the main bidder for the company's business, and that SolarWinds is starting to see a rebound from a soft second-quarter performance and should be poised to see some seasonal strength in the second half of the year.

SolarWinds has posted consistent sales growth over the past several quarters. It announced Wednesday updates to its remote IT administration and support software, DameWare Remote Support, which extend its over-the-Internet remote-session capabilities.

Write to Anne Steele at anne.steele@wsj.com

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(END) Dow Jones Newswires

October 09, 2015 13:25 ET (17:25 GMT)

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