Update: And it?s done. BMC Software announced today that it will be acquired by the private investor group led by Bain Capital, Golden Gate Capital Corp. in a deal worth $6.9 billion.
From BMC?s news release:
Under the terms of the agreement, affiliates of the Investor Group will acquire all outstanding BMC common stock for $46.25 per share in cash, or approximately $6.9 billion, representing an attractive premium to the Company?s unaffected stock price.? The agreement was approved by unanimous vote of those directors present.
?After a thorough review of strategic alternatives, the BMC board of directors is pleased to reach this agreement, which provides shareholders with immediate and substantial cash value, as well as a premium to our unaffected share price,? said Bob Beauchamp, chairman and chief executive officer at BMC.? ?BMC believes the opportunity to become a private company will provide additional flexibility and position us to invest more strategically to drive powerful innovation and deliver cutting edge customer solutions. We look forward to working closely with all parties to complete this transaction and enter into our next chapter of growth and industry leadership.?
The acquisition is expected to close later this year.
Original entry:
Houston-based BMC Software, which develops enterprise management and cloud computing solutions, is about to be acquired by a private equity group in a deal reportedly worth about $6.55 billion.
The group is comprised of Bain Capital and Golden Gate Capital Corp., according to a Reuters story, and has negotiated a price of around $46 a share for BMC?s stock.
An announcement on the sale could come as early as today, Reuters reported. BMC is scheduled to release its quarterly earnings on Tuesday. The company had annual 2012 revenues of about $2.2 billion.
BMC has been under increasing competitive pressure, Reuters writer Greg Roumeliotis reports:
Houston, Texas-based BMC Software shares ended trading at $45.42 on Friday. It competes with Oracle Corp, SAP AG , CA Inc and Compuware Corp, and has been under pressure from Paul Singer?s activist hedge fund Elliott Associates LP to sell itself since last year.
BMC currently trades in line with its peers at around 11.5 times projected earnings, according to Thomson Reuters data. At an offer price of $46 per share, it would be slightly above the average at 11.6 times projected earnings.
Elliott, a seasoned investor in the software sector, has a 9.7-percent stake in the company and has argued that BMC?s management was neglecting a huge opportunity to expand into Internet-based business software, a market dominated by the likes of Salesforce.com Inc.
The world?s largest providers of software for enterprises, including Oracle, SAP and Microsoft Corp, have already begun investing heavily in that market. Since Elliott first announced an activist stake in BMC last May, the software company?s shares have jumped over eight percent from $42 a share.
BMC has not responded to requests for comment, Reuters said.
The company was founded in 1980 by Scott Boulette, John Jay Moores and Dan Cloer ? the initials of their last names being used for the BMC?s name. Moores was BMC?s first CEO, and the company went public in 1988. Moores? name is on the School of Music at the University of Houston, and until last year he was the owner of the San Diego Padres professional baseball team.
Source: http://blog.seattlepi.com/techblog/2013/05/06/updated-bain-golden-gate-capital-to-buy-bmc-software/
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