Top of the Morning
BMC Software, a portfolio company of Bain Capital and Golden Gate Capital, is in early talks to acquire CA Inc. (Nasdaq: CA), a New York-based business software company with a current market cap north of $13 billion, according to Bloomberg.
- Why it's the BFD: If it were to happen, this would be the largest leveraged buyout of a tech company since PE-backed Dell bought EMC a couple of years back. It also would be significantly more expensive than Bain and Golden Gate's original takeover of BMC back in 2013, which was valued at around $6.9 billion.
- Bottom line: "CA, formerly known as Computer Associates, has its roots in providing mainframe computers used by large institutions like banks. It has been trying to shift its business to the cloud, and announced in March that it was acquiring application security firm Veracode for $614 million." — Liana Baker, Reuters
Venture Capital Deals
Private Equity Deals
• Cosco Group, a Chinese state-owned shipping container operator, is in advanced talks to acquire smaller rival Orient Overseas Container Line for at least $4 billion, according to the WSJ. http://on.wsj.com/2sStwyB
• Ericsson has hired Morgan Stanley to explore a sale of its media solutions business, and hired Goldman Sachs to explore a sale for its broadcast and media services unit, according to Bloomberg. The Swedish tech company also agreed to sell its power modules business to Flex (Nasdaq: FLEX) for an undisclosed amount. https://bloom.bg/2sSeRDK
• Landing Trade Group has agreed to acquire Interstate Commodities, a Troy, N.Y.-based grain management company, for an undisclosed amount. http://reut.rs/2sNVDy9
⛽ Rio Tinto (LSE: RIO) has rejected a $2.5 billion offer from Glencore PLC (LSE: GLEN) for its Australian coal assets, instead recommending an earlier $2.45 billion offer from Yancoal Australia (ASX: YAL) – which Rio Tinto believes could be completed faster. http://on.wsj.com/2rCfnBo
• Unilever has agreed to acquire Hourglass, a luxury color cosmetics brand. No financial terms were disclosed. http://bit.ly/2rAmwlA