martinwolf
Transaction Analysis
KKR Announces BMC Software Acquisition
Financial Information*
Transaction Facts
-
KKR & Co. (NYSE:KKR) announced this morning that it agreed to acquire BMC Software, officially acknowledging a transaction that had been speculated about and discussed over the last week.
-
This transaction,
reported by Bloomberg to be valued at approximately $8.3 billion including debt, is below the $10 billion figure that had been rumored but represents the firm's biggest acquisition since the 2008 financial crisis.
-
The transaction is expected to close in the third quarter of 2018.
Closing The Deal
- Big Deal: Though this deal itself is no record, it illustrates a swing back to bigger leveraged buyouts across the board--fueled by a record $1 trillion in dry powder. KKR is expected to be both more aggressive and more willing to skew bigger in a larger strategic shift.
- Spooling Up: This is the fourth $1 billion-plus technology acquisition by a buyout firm this year (following acquisitions of Mitel, VeriFone, and CommerceHub). This ties the number of such deals in all of the previous two years.
- Seeing Runway: KKR is said to be looking to capitalize on potential go-to-market, as Bain and GGC were seen to be focused primarily on product and invested hundreds of millions of dollars in R&D and other improvement initiatives. This opens the company to organic growth--a healthy complement to the standard PE playbook of bolt-on acquisition.
For more information about this transaction,
click here to read the press release and click here to read our analysis from last week when the deal was first rumored.
*Financial information from news reports.
martinwolf was
not the advisor in this transaction.
To receive instant analysis on the day's business news from the martinwolf team,
follow us on Twitter @martin_wolf_ and on LinkedIn at martinwolf.
|
| About martinwolf
Headquartered in Scottsdale, Arizona with offices in the San Francisco Bay Area and New York, martinwolf is a leading M&A Advisory focused on middle market companies in the IT Services, IT Supply Chain, IT-Enabled Business Process Outsourcing and Software as a Service (SaaS) space. Since 1997, our team has completed more than 155 transactions in over 20 countries and sold seven divisions of Fortune 500 companies. martinwolf is a member of FINRA and SIPC. For more information, visit www.martinwolf.com. To learn more about martinwolf, contact Bless Bai at [email protected]. © martinwolf 2018 |
|
|
"I find the harder I work, the more luck I seem to have.
"
Thomas Jefferson
_________
|
|
|
