BMC has announced its intention to acquire Compuware, with a focus on developing its offerings, including mainframe management, cybersecurity, application development, data and storage as part of DevOps.
BMC is a KKR portfolio company and a provider of IT solutions for digital enterprise. Compuware is a Thoma Bravo company that provides mainframe application development, delivery and support solutions.
According to BMC, this transaction builds on BMC's track record of investing in its growth. The acquisition is expected to close in the coming months, subject to customary closing conditions.
The financial details of the transaction were not disclosed. BMC states the combination of BMC and Compuware will build upon the BMC Automated Mainframe Intelligence (AMI) and the Topaz suite, ISPW technology, and product portfolios from Compuware to further modernise the mainframe industry.
The companies state they share a focus on consistently delivering innovative, best-of-breed products to meet the needs of enterprise organisations worldwide.
The combined company will help customers achieve seamless integration of the mainframe platform development and management processes into the enterprise technology stack, BMC states.
BMC CEO and president Ayman Sayed says, “BMC continues to be focused on evolving and investing in our portfolio to address and even anticipate the needs of our customers, helping them to succeed today and into tomorrow.
“It's the ideal time to bring Compuware into our portfolio as the traditional mainframe AppDev market transitions to DevOps. We're excited to welcome the Compuware team as we build best-of-breed modern mainframe solutions.
Compuware CEO Chris O'Malley says, “Compuware is the proven and trusted partner in mainstreaming the mainframe for Agile and DevOps, and we are thrilled to now be joining forces with BMC in reinventing the future of the platform.
“Both companies have been leaders in mainframe innovation over the last five years and we look forward to combining our complementary solution strengths and common passion for accelerating our customers' successful digital transformations. Without a doubt, a combined BMC and Compuware is the best, brightest, and most collaborative partner for a new generation of mainframe stewards.
This will be one of the largest acquisitions in BMC's history and the company's third acquisition in less than two years. In a broad sense, BMC states it continues to focus on investing in innovative and disruptive technologies.
KKR partner John Park and Thoma Bravo managing partner Seth Boro also commented on the acquisition.
Park says, “The acquisition of Compuware brings together two highly complementary, best-in-class technology offerings.
“We believe the combination of these two companies will create a leading, end-to-end platform focused on driving innovation for our mainframe customers worldwide.
Boro says, “We are proud to have partnered with Compuware over the past five-and-a-half years during which time the company has become a leading innovator in the mainframe software market.
“Compuware's transformation during this time has been remarkable and is a testament to the vision and leadership of Chris O'Malley and the company's management team. We would like to thank all of Compuware's employees for their dedication, effort and partnership over the course of Thoma Bravo's ownership.
Macquarie Capital and Jefferies LLC acted as financial advisors to BMC and KKR, and Simpson Thacher - Bartlett LLP served as BMC counsel. Credit Suisse served as financial advisor to Compuware, and Kirkland and Ellis served as legal counsel.