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Transaction
Case Studies

Peter A. Sokoloff & Co. regularly analyzes transactions which occur within the industries covered. An archive of these case studies is kept online as a courtesy to our colleagues. To receive by e-mail new case studies as they are prepared, please e-mail bwalko@sokoloffco.com with your contact information.

Archives > Transaction Case Study 70

SOKOLOFF & COMPANY CASE STUDY
Bain Capital and Golden Gate Capital
Acquires BMC Software, Inc. (Nasdaq: BMC)

DATE ANNOUNCED:  May 6, 2013
BUYER:   Bain Capital and Golden Gate Capital   
SELLER:  BMC Software, Inc. (Nasdaq:  BMC)
PURCHASE PRICE:   $46.25 Per Share valued at $6.9 Billion
FORM OF PURCHASE PRICE:  Cash

SELLER’S FINANCIAL INFORMATION AND M&A MULTIPLES

Year FYE March 30 2011 FYE March 30 2012 Trailing Twelve Months
through
December 31, 2012

Revenue

$2.06B

$2.17B

$2.20B

EBITDA

$722.80M

$765.80M

$701.80M

Cash

 

 

$1.3B

Debt

 

 

$1.34B

Purchase Price

 

 

$6.9B

Enterprise Value

 

 

$6.94B

Multiple of Revenue

 

 

3.15

Multiple of EBITDA

 

 

9.89

TRANSACTION DRIVERS: 

Bob Beauchamp, chairman and CEO of BMC stated that the transaction “provides shareholders with immediate and substantial cash value, as well as a premium to our unaffected share price” and that “the opportunity to become a private company will provide additional flexibility and position us to invest more strategically to drive powerful innovation and deliver cutting edge customer solutions.”

Ian Loring, Managing Director at Bain Capital stated that “BMC is the only enterprise software vendor that can go from mainframe to mobile, with solutions that help IT drive real business innovation and optimize operations management and employee productivity,” while Prescott Ashe, managing director at Golden Gate Capital said “BMC is an innovative leader in IT operations management and has strong leadership positions in growing segments such as cloud management, service management and workload automation.” 

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