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Investment firm snaps up BMC Software in multibillion-dollar deal

Investment firm snaps up BMC Software in multibillion-dollar deal

Terms of the buyout will see KKR take full control of the software specialists

Credit: BMC Software

BMC Software has been acquired by investment firm, KKR, five years after the enterprise provider was taken private by a consortium of private equity buyers.

Terms of the buyout will see KKR take full control of the software specialists in a deal rumoured to total US$8.3 billion, according to media speculation, with a completion date expected by the close of the third quarter of 2018.

The move sees BMC part ways with an investment group consisting of Bain Capital and Golden Gate Capital, which purchased the vendor for US$6.9 billion in 2013.

“With the support and partnership of our Investor Group, BMC significantly accelerated its innovation of new technologies and new go-to-market capabilities over the past five years,” BMC president and CEO, Peter Leav, said.

“Our growth outlook remains strong as BMC is competitively advantaged to continue to invest and win in the marketplace.

“Our customers can expect the BMC team to remain focused on providing innovative solutions and services with our expanding ecosystem of partners to help them succeed across changing enterprise environments.”

Since going private in September of 2013, Leav said BMC has “reallocated hundreds of millions of dollars” toward higher growth research and development (R&D) projects, backed up by digital-centric go-to-market initiatives.

With more than 10,000 customers worldwide - including 92 per cent of the Forbes Global 100 - BMC specialises in the management and optimisation of technology across cloud, hybrid, on-premise, and mainframe environments.

From a channel perspective, the vendor partners with consulting specialists, service providers and technology providers, alongside independent software vendors (ISVs) and developers.

Key partners include Accenture, Capgemini, Tech Mahindra, Fujitsu and Cognizant, alongside alliance vendors such as SAP, AVG and Huawei.

“In an ever-changing IT environment that is only becoming more complex, companies that help simplify and manage this essential infrastructure for their enterprise customers play an increasingly important role,” KKR head of technology, media and telecom, Herald Chen, added.

“With more than 10,000 customers and 6,000 employees, BMC is a global leader in managing digital and IT infrastructure with a broad portfolio of software solutions.

“We are thrilled to partner with the talented BMC team to accelerate growth - including via M&A - building on BMC’s deep technology expertise and long-standing customer relationships.”

Meanwhile, KKR operates as a global investment firm, managing assets across private equity, technology, energy, infrastructure, real estate and credit.

According to Chen, KKR has a “long record” of supporting technology companies, having invested over $26 billion in the sector during the past decade.

“BMC has led innovation in their space and invested significantly in the product portfolio, and it has been gratifying to see the results in top line growth and enhanced competitive positions,” Bain Capital Private Equity managing director, David Humphrey, added.


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