First Dell, now BMC: Which legacy IT company will go private next?
Summary:
Who is willing to bet that Dell and BMC taking themselves private is the end of a trend? Right, me neither.
With BMC being taken private by a pair of private equity firms in a deal worth $6.9 billion or $46.25 per share in cash, one has to wonder what legacy IT vendor will be next to take this route.
Dell blazed the trail in February when it announced plans to take itself off the public market. That move, valued at $24.5 billion, was orchestrated by founder and CEO Michael Dell and Silver Lake Partners. Critics said the price undervalued the company which remains a power in PCs and servers, and is navigating a shift into cloud computing. In the mobile space, Alltel was ahead of the trend, taking itself private in 2007, and was scooped up by Verizon two years later for $5.9 billion.
Citing unnamed sources, Reuters first reported Sunday that a BMC take-out by an investment group comprising Bain Capital and Golden Gate Partners was under discussion. BMC is not a household name for consumers but in business it’s a pretty big deal for enterprise IT and database admins.
BMC brands include Remedy service management software; BladeLogic automated configuration management; and Track-IT help desk and asset management. These are the kinds of non-glam tools that keep a data center running. Dell bought Quest Software, probably BMC’s most direct competitor, in deal that was completed in September 2012.
Dell blazed the trail in February when it announced plans to take itself off the public market. That move, valued at $24.5 billion, was orchestrated by founder and CEO Michael Dell and Silver Lake Partners. Critics said the price undervalued the company which remains a power in PCs and servers, and is navigating a shift into cloud computing. In the mobile space, Alltel was ahead of the trend, taking itself private in 2007, and was scooped up by Verizon two years later for $5.9 billion.
Citing unnamed sources, Reuters first reported Sunday that a BMC take-out by an investment group comprising Bain Capital and Golden Gate Partners was under discussion. BMC is not a household name for consumers but in business it’s a pretty big deal for enterprise IT and database admins.
BMC brands include Remedy service management software; BladeLogic automated configuration management; and Track-IT help desk and asset management. These are the kinds of non-glam tools that keep a data center running. Dell bought Quest Software, probably BMC’s most direct competitor, in deal that was completed in September 2012.
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