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BMC Goes for $6.9 Billion

It said Monday that its revenues for the 12 months ended March 31 totaled $2.2 billion

BMC Software is getting sold to a group of private equity investors led by Bain Capital and Golden Gate Capital for roughly $6.9 billion or $46.24 a share, a higher price than the $6.5 billion expected.

The buyers also include Singapore's sovereign wealth fund GIC Special Investments and Insight Venture Partners, which focuses its investments on e-commerce, Internet, on-premise and SaaS-based software and data-services companies.

The final details of what was already a binding offer were reportedly worked out over the weekend. The debt financing is coming from Credit Suisse, RBC Capital Markets and Barclays.

Although BMC's board approved the deal, it's still got 30 calendar days to solicit alternative proposals from third parties.

Responding to weeks of press reports of an imminent sale BMC shares closed at $45.42 Friday. Reuters reported on March 21 that private equity firms were interested in the company. The stock rose 4.5% since then. Naturally it is up again on the announcement Monday to $45.50 in hopes of a sweetener.

BMC CEO Bob Beauchamp said the price "provides shareholders with immediate and substantial cash value, as well as a premium to our unaffected share price."

He has evidently come around to the idea that taking BMC private "will provide additional flexibility and position us to invest more strategically to drive powerful innovation and deliver cutting-edge customer solutions."

The company under his leadership was criticized for not modernizing and moving fast enough into SaaS and cloud. Its wares go from the mainframe to mobile.

BMC is supposed to report its numbers Tuesday but there will be no conference call. It said Monday that its revenues for the 12 months ended March 31 totaled $2.2 billion.

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Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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