BMC Acquires BladeLogic For Data Center Automation (BMC, BLOG)

March 17, 2008 by Douglas A. McIntyre

BMC Software (NYSE:BMC) has announced that it will acquire BladeLogic (NASDAQ:BLOG) for $28.00 per share of BladeLogic common stock.  The data center automation company acquisition is valued at $800 million, net of cash acquired.  According to BMC, BladeLogic will add a significant, high-growth revenue stream to BMC, accelerating the company’s long- term growth expectations for revenues, earnings, and cash flow.

As far as what BMC is getting, here is part of it.  BladeLogic has a large installed base of Fortune Global 500 customers:

  • 21 of the top 100 global companies,
  • 3 of the top 10 aerospace & defense companies,
  • 7 of the top 25 commercial and savings banks,
  • 3 of the top 5 securities companies,
  • 2 of the top 3 entertainment companies,
  • 2 of the top 3 general merchandisers,
  • 7 of the top 12 pharmaceutical companies,
  • and 7 of the top 10 telecommunications companies.

BladeLogic shares were actually up more than 50% from 2008-lows before this deal was announced. BladeLogic closed at $23.61 on Friday, and its 52-week trading range is $14.51 to $31.71.  BMC Software’s market cap before any initial dilution from this merger was listed as just under $6.5 Billion.

Jon C. Ogg
March 17, 2008

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