May 29, 2018

BMC Software to become "acquisition engine" under KKR

KKR co-founder Henry Kravis at Trump Tower. Photo by Drew Angerer/Getty Images

Private equity firm KKR this morning announced a deal to buy BMC Software from Bain Capital and Golden Gate Capital.

Bottom line: Expect BMC to soon begin buying up smaller enterprise software companies. As a source says: "It will probably become an acquisition engine again."

  • No terms were disclosed. We hear the price was below the $10 billion figure that has been bandied about, but well above the $6.9 billion that Bain and GGC paid to take BMC private five years ago.
  • Bain and GGC had previously tried to buy CA and then merge it with BMC, but ran into financing troubles. Rival bidder Thoma Bravo reportedly wanted to merge BMC with existing portfolio company Compuware.
  • KKR plans to go it alone, but don't be surprised if it ramps up the add-on acquisition engine (something BMC was famous for prior to its take-private). Nothing specific is baked into the deal, however.
  • In terms of organic growth, a source says that KKR believes Bain and GGC focused primarily on product, and that it can capitalize on available go-to-market.

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Mass shooting in Milwaukee: What we know so far

Milwaukee Mayor Tom Barrett in 2012. Photo: John Gress/Corbis via Getty Images

Six people died in a shooting at the Milwaukee Molson Coors brewery complex on Wednesday, including the shooter, Mayor Tom Barrett told reporters at an evening press conference with local police.

What's happening: Police said "there is no active threat" just before 6 pm ET, but noted the scene remains active. Police chief Alfonso Morales told reporters that officers have "more than 20 buildings we have to secure" at the complex and they do not currently have all employees accounted for, as more than 1,000 were at the complex during the shooting.

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Live updates: CDC confirms possible community spread of coronavirus

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens.

U.S. clinicians have found the novel coronavirus in a person who did not recently return from a foreign country nor have contact with a confirmed case, the CDC said Tuesday.

The big picture: COVID-19 has killed more than 2,700 people and infected over 81,000 others. By Wednesday morning, South Korea had the most cases outside China, with 1,261 infections. Europe's biggest outbreak is in Italy, where 374 cases have been confirmed.

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Trump assigns Pence to lead U.S. coronavirus response

Photo: ANDREW CABALLERO-REYNOLDS/AFP via Getty Images

President Trump announced at a press briefing Wednesday evening that he'll be putting Vice President Mike Pence in charge of leading the administration's response to the coronavirus.

The big picture: In the wake of a market sell-off and warnings from health officials that there's a real threat of the coronavirus spreading in the U.S., Trump sought to reassure the nation and Wall Street that the U.S. is "ready" for whatever comes next.

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