Exclusive: Buyout firms team up to take BMC Software private - sources

Thu Mar 21, 2013 2:16pm EDT
 
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By Greg Roumeliotis, Nadia Damouni and Soyoung Kim

NEW YORK (Reuters) - Private equity firms are joining forces in the auction of BMC Software Inc, four people familiar with the matter said on Thursday, making it more likely that the business software maker will be taken private in a deal that will top $6 billion.

Shares of BMC jumped as high as 9 percent on the news and were trading up 4.1 percent at $45.71 in early afternoon trading, giving the Houston, Texas-based company a market value of around $6.6 billion.

KKR & Co LP and TPG Capital LP have formed a consortium, the people said on condition of anonymity because the process is confidential. Bain Capital LLC and Golden Gate Capital have separately also teamed up for the auction, the people added.

Thoma Bravo LLC is participating in a third buyout consortium, one of the people said. None of the people disclosed how much the private equity firms would be willing to pay for BMC.

The process is now past the first rounds of bids and management presentations are taking place, the people said, adding that final bids are expected in the next few weeks.

A BMC Software spokesman declined to comment. KKR, TPG, Golden Gate, Bain and Thoma Bravo also declined to comment.

BMC, which competes with Oracle Corp, SAP AG, CA Inc and Compuware, was under pressure from Paul Singer's activist hedge fund Elliott Management to sell itself last year.

The company eventually said it had weighed strategic options and had decided to buy back $1 billion in stock.   Continued...