BMC to Acquire BladeLogic for $800m

Enterprise software provider BMC Software announced on Monday it has signed a authoritative accord to acquire data center automation provider BladeLogic for $28 in cash per outstanding share of BladeLogic common stock, or a total of approximately $800 million.

Once the purchase is concluded, it will bring a major, high-growth revenue stream to BMC. Consequently, BMC will be able to improve its long-term growth prospect for revenues, earnings and cash flow.

The acquisition comes at a time when numerous principal management vendors and data center management providers are looking to obtain the latest server technology with the intention of building into their equipment. Last Autumn, Hewlett-Packard acquired data center automation provider Opsware for a whopping $1.6 billion.

BladeLogic has experienced a massive expansion since it launched in 2001 as an automated server provisioning software company, centered on distributing blade configurations on a one-to-many basis. The company at present has over 70 customers and is anticipated to deliver $90 million in revenue for fiscal 2008, according to global market intelligence firm International Data Corporation.

BMC and BladeLogic’s solution portfolios have already been incorporated, and the companies will almost immediately combine BMC’s business service management platform with BladeLogic’s data center automation solutions. The move to coalesce the solutions remains unswerving with BMC’s strategy to maintain the “purpose built” capabilities of each company’s products.