The board of BMC Software (NASDAQ: BMC ) has unanimously approved a $6.9 billion buyout offer from a private investor group that includes Bain Capital, Golden State Capital, GIC Special Investments PLC, and Insight Venture Partners.
The deal announced this morning calls for the investment group to pay $46.25 for all outstanding shares of BMC stock, and subsequently make BMC a privately held company.
"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," BMC Software CEO Bob Beauchamp was quoted as saying.
BMC shares closed Friday at $45.42 and are at $45.50 as of this writing.
Elliott Management, owner of 9.6% of BMC's common stock, has agreed to vote in favor of the proposed transaction. Elliott portfolio manager Jesse Cohn said, "Elliott applauds the BMC Software board and executive leadership for delivering this value-maximizing outcome for stockholders."
Prescott Ashe, managing director of Golden Gate Capital, was quoted in the company press release as saying, "BMC is an innovative leader in IT operations management and has strong leadership positions in growing segments such as cloud management, service management and workload automation.”
Terms of the buyout agreement include a 30-day go-shop provision in which BMC can solicit additional offers. The deal is expected to close later this year, and is subject to BMC shareholder and regulatory approval, in addition to customary closing conditions.