BMC Software Agrees to $6.9 Billion Buyout

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.

link


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2410875, ~/Articles/ArticleHandler.aspx, 7/24/2014 6:39:42 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement