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Investment Group KKR Buying BMC for $8.3B

Tuesday May 29th 2018 by Sean Michael Kerner

38-year old software vendor is being acquired, five years after the company went private.

Software vendor BMC is being acquired, again. On May 29, BMC announced that it is being purchased by global investment firm KKR.

Financial terms of the deal have not been publicly disclosed, though a person familiar with the deal reportedly told the Financial Times that the acquisition is valued at $8.3 billion.

BMC has been privately held by an investor consortium that includes Bain Capital Private Equity, Golden Gate Capital, GIC, Insight Venture Partners and Elliott Management since September 2013. The private investing group paid $6.9 billion in 2013 to take the company private.

BMC has been in business for 38 years and has a vast software portfolio. Among the core areas of BMC product portfolio are operations and service managementn as well as automation and orchestration products.

"With the support and partnership of our Investor Group, BMC significantly accelerated its innovation of new technologies and new go-to-market capabilities over the past five years," Peter Leav, president and chief executive officer of BMC, wrote in a statement. "Our growth outlook remains strong as BMC is competitively advantaged to continue to invest and win in the marketplace. "

Rishi Chandna, managing director at Golden Gate Capital and a member of the BMC Board of Directors, commented that today, BMC's solutions serve as the digital innovation and operations engine for thousands of customers worldwide.

"We are confident that BMC will continue this momentum and has a bright future ahead," Chandra stated.

From KKR's perspective, Herald Chen, KKR member and head of the firm's Technology, Media & Telecom (TMT) industry team, and John Park, KKR member, commented that with more than 10,000 customers and 6,000 employees, BMC is a global leader in managing digital and IT infrastructure with a broad portfolio of software solutions. 

"We are thrilled to partner with the talented BMC team to accelerate growth — including via M&A — building on BMC's deep technology expertise and long-standing customer relationships," KKR stated.

Sean Michael Kerner is a senior editor at EnterpriseAppsToday and InternetNews.com. Follow him on Twitter @TechJournalist.

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