Consortium Of Investors Buy BMC Software For $6.9 Billion

Posted May 6, 2013

BMC Software, Inc, (NASDAQ:BMC) has been acquired by a private investor group for roughly $6.6 billion in cash.  Based in Houston, Texas, BMC is known for creating system management software for businesses.  The deal is based on $46.25 per share, which is less than 2% above the company’s closing stock price of $45.42.

According to FactSet, BMC has around 143 million shares outstanding.  This values the deal at around $6.6 billion, but the companies said that the deal is worth $6.9 billion.

?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,? stated BMC chairman and CEO Bob Beauchamp.  ?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 Investors

The lead investors in the consortium are Bain Capital and Golden Gate Capital.  Special Investments and Insight Venture Partners also participated in this deal.

Elliot Management owns 9.6% of BMC’s stock and they agreed to vote their shares in favor of the deal.  The deal is expected to close later this year.  Last year, Elliott started a proxy to have BMC acquired.

BMC’s stock price started to grow in March after there were reports that BMC was considering buyout offers from several private equity companies.

BMC will be able to solicit alternative deals within the next 30 days.