Over time, Texas software firm plans 1,040 jobs in Utah
SolarWinds Inc. will create more than 1,000 jobs in Utah over the next 20 years after the Governor's Office of Economic Development approved a large tax incentive for the acclaimed Texas-based company.
The 1,040 jobs are expected to pay more than $1.4 billion in new wages during the lifetime of SolarWinds' agreement with the state of Utah. The company develops information technology management software that engineers and system administrators use to keep track of computer networks and servers.
"They are looking at three sites in northern Utah county," GOED spokesman Michael Sullivan said Thursday.
The company already operates out of a temporary office on Executive Parkway in Lehi, where it employs 20 people in sales and customer support. Although the office is in Utah County, SolarWinds hasn't ruled out other parts of the state for a suitable location to build or lease a bigger building, said Tiffany Nells, vice president of marketing.
Nells said SolarWinds talked to a number of states about its expansion plan, but always had Utah at the top of its list.
"We continue to grow aggressively as a company. We wanted to have another major North American location. [Utah] gives us another base of potential talent to draw from to meet our growth needs," she said.
Over the next two decades, the company will create a range of positions in Utah, such as sales, marketing, software research and development and corporate finance. Hiring will occur gradually over time, Nells said.
"While our corporate headquarters will remain in Austin, we plan to make Utah an important hub from which we plan to drive significant future growth," CEO Kevin Thompson said.
SolarWinds can draw on the $32.9 million post-performance tax credit as it creates the jobs. Offsetting the credit will be $109 million in new state taxes, according to GOED.
In October, Forbes magazine named SolarWinds the "Best Small Company in America," citing the quality of its affordable products and rapid growth. Annual revenue has increased more than 30 percent over the past four years. Net income was $81.3 million last year, up 30 percent from 2011. Revenue totaled $269 million, a 36 percent gain.
The company employs 900 people. It has overseas offices in Ireland, Australia, Singapore, India and the Czech Republic.