Investor group that includes Bain Capital agrees to buy BMC Software in $6.9b deal

BMC Software has agreed to be acquired by by a private investor group led by Bain Capital and Golden Gate Capital together with GIC Special Investments Pte Ltd and Insight Venture Partners in a deal valued at $6.9 billion.

Ian Loring. Photo taken from Bain Capital website.

Texas-based BMC Software, which has a presence in Greater Boston, provides small and mid-sized businesses with software to manage their business services. Bain Capital LLC is a global private investment firm headquartered in Boston.

According to the press release outlining the proposed transaction, the investment firms have agreed to acquire all outstanding BMC common stock for $46.25 per share in cash, or approximately $6.9 billion, representing a premium to the company’s unaffected stock price.

Advertisement - Continue Reading Below

“BMC is the only enterprise software vendor that can go from mainframe to mobile, with solutions that help IT drive real business innovation and optimize operations management and employee productivity,” Ian Loring, managing director at Bain Capital, said in a statement. “We and the rest of the investor group look forward to working with the management team and employees of BMC to execute additional growth strategies designed to expand the company’s capabilities and enhance its relationships with customers and partners around the world.”

The transaction is expected to close later this year, and it is subject to approval from BMC shareholders, regulatory approvals, and other customary closing conditions.

“Under the terms of the agreement, for a period of 30 calendar days, BMC may solicit alternative proposals from third parties,” the press release said. “BMC does not anticipate that it will disclose any developments with regard to this process unless and until the BMC board of directors makes a decision with respect to a potential superior proposal. There are no guarantees that this process will result in a superior proposal.”