Infotech Lead India: Private equity funds will buy BMC Software for $6.9 billion.
Investor group led by Bain Capital and Golden Gate Capital together with GIC Special Investments and Insight Venture Partners made the announcement on Monday.
In the four fiscal quarters ended December 31, 2012, BMC revenue was approximately $2.2 billion.
Bob Beauchamp, chairman and chief executive officer at BMC, said: “We believe 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.”
Elliott Management, which owns 9.6 percent of the BMC common stock, has agreed to vote its shares in favor of the transaction.
BMC, an enterprise software vendor, can go from mainframe to mobile, with solutions that help IT drive real business innovation and optimize operations management and employee productivity.
Credit Suisse, RBC Capital Markets and Barclays have agreed to provide debt financing in connection with the transaction.
Total revenue for the third quarter was $580 million, up 6 percent. Its net earnings for the third quarter were $106 million.
The company said its active SaaS customers more than doubled to approximately 550 in the third quarter of fiscal 2013. Its SaaS revenue also more than doubled. Cloud business continues to grow, with cloud-related license bookings up 44 percent.
Recently, Dell had undergone a similar exercise whereby the laptop and computer company became a private company to focus more on business growth.