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KKR In Talks to Acquire BMC Software for $10 Billion

martinwolf Transaction Analysis
Financial Information*
  • Transaction Value: ~$10B
  • EV/LTM Revenue: N/A
  • EV/LTM EBITDA: N/A
Transaction Facts
  • According to the New York Post, private equity firm KKR (NYSE: KKR) is in exclusive talks to buy BMC Software from its current PE parents Bain Capital and Golden Gate Capital for $10B.
  • Bain and Golden Gate took the previously public company private five years ago for $6.9B. Last week, it was reported that BMC had been working with advisers to explore a sale.
From One PE Parent to Another
  • Billion-Dollar Deals: This deal could potentially represent the biggest tech deal in recent years. There has not been a leveraged buyout led by a PE firm exceeding $10B since 2013, when Michael Dell and Silver Lake Partners took Dell private.
  • Tight Competition: A few days ago, reports that KKR and Thoma Bravo were in the running to buy BMC emerged. Thoma Bravo is one of the most active PE firms in the software industry, typically acquiring companies in need of restructuring, such as Compuware. Since the firm added software and technology to its investment focus, it has completed 54 acquisitions in the space (23 platform companies and 31 add-ons) with an aggregate value exceeding $7.5B. The firm entered into a definitive agreement to sell PowerPlan to Roper Technologies for $1B earlier this week.
  • Active M&A Market: Recent KKR acquisitions over the past few years include thetrainline.com for an undisclosed sum, WebMD Health for $2.8B, and Epicor Software for $3.3B.
  • Rare Sighting: In July of last year, BMC ended discussions to merge with enterprise software maker CA Technologies after alleged difficulty securing financing for the deal. Big leveraged buyouts of mature technology companies have become rarer over the past few years; Citrix Systems, another business software company, was unable to go private after looking for buyers last year.
For more information about this transaction, click here to read the report.
 
*Financial information from the report.
martinwolf was not the advisor in this transaction.
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