Welcome!

SOA & WOA Authors: Elizabeth White, Roger Strukhoff, Dana Gardner, Mark Cravotta, Jason Thompson

Related Topics: Cloud Expo, SOA & WOA, Virtualization, Web 2.0, Big Data Journal, SDN Journal

Cloud Expo: Article

BMC to Be Auctioned Off & Taken Private: Reuters

Reuters says the process is past the first round of bids. Final bids are due in a few weeks

While Dell struggles to go private, private equity is reportedly staging a run on fellow Texan BMC Software, dying to take the thing private and satisfy Elliott Management, which got Novell sold off to Attachmate a while back.

According to Reuters KKR and TPG Capital, which turned their noses up at Dell, have formed a consortium to bid on BMC. So have Bain Capital and Golden Gate Capital. Ditto Thoma Bravo, which is said to be participating in still a third consortium.

The deal is expected to top $6 billion.

When the market closed Thursday after the Reuters story circulated and its shares jumped to $45.49 its market cap stood at $6.5 billion.

Reuters says the process is past the first round of bids. Final bids are due in a few weeks.

Elliott, which is believed to own about 9.6%, got the ball rolling last year when it argued that management had missed the shift to Software-as-a-Service and should trim headcount.

Resistance was evidently futile after BMC forecast lower-than-expected profits for 2013 and reported Q3 results than didn't meet Wall Street expectations in January.

The company competes with Oracle, SAP, CA and Compuware.

Compuware, which rejected a $2.3 billion bid from Elliott, is also reportedly talking to buy-out firms.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.