BMC to Sell Itself to a Private Equity Consortium

BMC, a software company with an extensive portfolio of tools for z/OS, has announced it recommends shareholder acceptance of an offer from a consortium of private equity investors to buy all of the company's publicly traded shares. The consortium includes Bain Capital and Golden Gate Capital, and the offer price is $46.25 per share which values the company at about $6.9 billion.

There's a reasonable theoretical argument that companies liberated from quarterly Wall Street reporting pressures will be able to invest more and more strategically in developing their businesses, and that's the argument BMC's management is making. However, the actual results of companies that sell themselves to private equity firms are decidedly mixed.

Golden Gate Capital already owns at least a portion of several software companies including Infor and Attachmate (which in turn owns Novell), so they have some investment experience in IBM zEnterprise-related software companies. Bain Capital owns part of SunGard.

by Timothy Sipples May 6, 2013 in Current Affairs, Financial
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