Private equity firm KKR announced it has agreed to buy BMC Software from a group of investors that includes Bain Capital, Golden Gate Capital, GIC Pte Ltd, Insight Venture Partners, and Elliott Management.
The terms of the deal were not disclosed.
Last week, the New York Post reported the deal was worth around $10 billion, citing a source close to the situation. Bain and Golden Gate took BMC private five years ago in a deal worth $6.9 billion.
“Our growth outlook remains strong as BMC is competitively advantaged to continue to invest and win in the marketplace,” BMC President and Chief Executive Peter Leav said.
“Our customers can expect the BMC team to remain focused on providing innovative solutions and services with our expanding ecosystem of partners to help them succeed across changing enterprise environments,” he added.
Three $1 billion-plus technology acquisitions had already been announced this year, including takeovers of Mitel Networks, VeriFone Systems, and CommerceHub, Bloomberg reports.
Last June, BMC and CA Technologies (formerly Computer Associates) were reportedly in talks to combine and take CA private in a $15 billion deal, but that transaction fell through.
“In an ever-changing IT environment that is only becoming more complex, companies that help simplify and manage this essential infrastructure for their enterprise customers play an increasingly important role,” Herald Chen, head of the technology, media & telecom industry team at KKR, said.
BMC provides IT service management, cloud management services, and application optimization services to global enterprises, after pivoting from mainframe software. It has more than 10,000 customers and 6,000 employees.
KKR said it has invested more than $26 billion in the technology, media, and telecom sector in the last 10 years. BMC joins a portfolio that includes Mitchell, Epicor, and Calabrio.
The transaction is expected to close in the third quarter of 2018.