BMC Software Inc. to Purchase BladeLogic Inc. for 12.5 Times Revenue

The Deal: BMC Software has agreed to acquire BladeLogic Inc. in a cash tender offer of $28 per share. BMC values the transaction at approximately $800 million, net of cash acquired. BladeLogic's board has unanimously recommended that its shareholders accept the offer. The agreement remains subject to regulatory approval and other customary closing conditions.

Discussion: BladeLogic provides data center automation software applications to businesses, service providers, and government agencies. BladeLogic customers use its software to configure and maintain servers. The company also provides tools used to manage application releases and updates. BladeLogic provides consulting and training, as well as system installation, maintenance, and support services.

BMC Software develops enterprise management software. The company's applications are used for business functions such as data recovery and storage management, business process scheduling, application and database performance management, and server management. In addition to its software products, BMC also offers professional services including consulting and systems integration.

BMC stated that the acquisition would add BladeLogic's software to its existing product line, providing a significant additional revenue stream. Both companies became publicly traded in 2007.

Copyright NVST, Inc. Mar 31, 2008
Provided by ProQuest Information and Learning Company. All rights Reserved