Tech Dealmaker Awards

Beauchamp

On March 17, 2008, Houston-based BMC Software Inc. acquired Lexington-based BladeLogic Inc. for $28 in cash per outstanding share of BladeLogic common stock or approximately $800 million, net.

BMC, which operates in more than 30 countries, provides enterprise management software including business service management and service automation. BladeLogic, a provider of data center automation software with a large installed base of Global 500 customers, was targeted for acquisition by BMC because it was a fast-growing company in the rapidly growing IT automation market, BMC reported. By acquiring BladeLogic, BMC added server automation capabilities to its portfolio, including Operations Manager, Compliance Manager, Configuration Manager, Virtualization Manager, and Application Release Management.

“The acquisition of BladeLogic enabled us to create the industry’s new leader in IT service automation (which is) the fastest growing part of Business Service Management,” BMC global communications director Mark Stouse said. “We think that there is an extraordinary opportunity in service automation. The increased complexity of IT environments and focus to drive costs out of IT is driving this opportunity.”

BladeLogic represents one of many BMC acquisitions, most recently the acquisitions of Emprisa, RealOps, ProactiveNet, and ITM Software. Since the acquisition of BladeLogic, BMC has reported strong growth in license bookings in its service automation business.

— Bridget Botelho

Category

Software and Services

The Deal

BMC Software Inc. recorded growth after acquiring BladeLogic for about $828 million

Key Executives

BMC: president and CEO Bob Beauchamp; senior vice president and CFO Steve Solcher; senior vice president and general counsel Denise Clolery, senior vice president and general manager for enterprise service management Jim Grant
BladeLogic: president and CEO Dev Ittycheria

Deal advisers

Financial: BMC — Merrill Lynch & Co.; BladeLogic — Morgan Stanley & Co. Inc.
Legal: BMC — Latham & Watkins LLP; BladeLogic — Goodwin Procter LLP
Investors in BladeLogic: Battery Ventures, Bessemer Venture Partners, Globespan Capital Partners, MK Capital

• Platinum Sponsor:
• Gold Sponsors: Capital Source
  Silicon Valley Bank
  TM Capital
  Vitale, Caturano & Co.
• Silver Sponsors: Capital IQ
  Citizens Bank
• Supporting Sponsors: Mass High Tech
  Preston Productions
  Trinity Communications

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