In the latest sign that big buyouts are back, Bain Capital is helping to lead a $6.9 billion deal to acquire BMC Software Inc.
BMC is a Houston-based maker of software that lets companies manage their information systems, including use of the cloud. It has 6,100 employees, 47 of them in Boston, and had revenue of $2.2 billion last year. The deal comes as banks are opening up their vaults to provide debt for buyout deals at a level not seen since the financial crisis.
Other large deals that have been proposed this year include Michael Dell’s effort to take Dell Inc. private for $24.4 billion and Warren Buffett’s purchase of H.J. Heinz Co., the ketchup maker, for $23 billion.
BMC has faced pressure from its largest investor to sell the company for some time. Elliott Management Corp., a New York hedge fund that owns nearly 10 percent of the company, said it was in favor of the Bain-led buyout. Portfolio manager Jesse Cohn said in a statement, “We think this is a tremendous outcome for BMC’s employees, customers, and stockholders.”
Under the terms of the deal, BMC Software would be acquired for $46.25 per share in cash. Shares closed unchanged yesterday, at $45.42. For 30 days, BMC has the right to solicit better bids from other parties. The acquisition is expected to close later this year.
Coleading the deal with Bain Capital is Golden Gate Capital, a San Francisco private equity firm started by former Bain executives. Other members of the investment group are GIC Special Investments, an arm of the Government of Singapore Investment Corp.; and New York’s Insight Venture Partners.
Bain’s last deal was the acquisition of Apex Tool Group for $1.6 billion in February. One of the firm’s managing directors, Ian Loring, said he would “look forward to working with the management team and employees of BMC to execute additional growth strategies,” aiming to expand the company’s capabilities and help it expand around the world.
Beth Healy can be reached at email@example.com.