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Private equity consortium takes BMC Software private
The value: $6.9 billion
The skinny: Bain Capital LP and Golden Gate Capital Corp. led a private equity consortium that included Insight Venture Partners and GIC Special Investments to take Houston's largest software development company, BMC Software Inc. (Nasdaq: BMC), private. Elliott Associates LP, an activist hedge fund that initially petitioned for BMC to go private, joined the buyer group before the deal closed. Under the new management, BMC will invest more in and grow its cloud and software-as-a-service businesses. Also, as a private company, BMC can invest in long-term strategic products and services without worrying about the pressures of public quarterly earnings. BMC employs about 6,500.
Date closed: Sept. 10
Dealmakers: BMC used Morgan Stanley & Co. LLC and Bank of America Merrill Lynch as financial advisers, and Wachtell, Lipton, Rosen & Katz as legal counsel. The investor group used Qatalyst Partners, Credit Suisse, RBC Capital Markets and Barclays as financial advisers. For legal counsel, the investor group used Kirkland & Ellis LLP, and PwC LLP served as accounting advisor. GIC used Sidley Austin LLP as legal counsel. Insight Venture Partners used Willkie Farr & Gallager LLP as a legal adviser.
What's next? After the deal closed, Bob Beauchamp, BMC's CEO, declared that the software company is "back on the offense." The company has already completed the acquisition of a midsize tech company, Partnerpedia, that advances its information technology "consumerization" portfolio, and BMC is rumored to be pursuing a large, more than $2 billion acquisition of Compuware Corp. (NYSE: CPWR).