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

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By Douglas A. McIntyre Published
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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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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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