BMC and CA in agreeable acquisition talks – report

The world may need only one company where old software goes to die

8 Reg comments Got Tips?

BMC and CA are considering a consensual acqui-merger, reports Bloomberg.

Citing sources familiar with the talks, the report says the two companies have chatted to banks about how to put together the US$13bn or so needed to acquire CA's outstanding shares, to take the company private.

BMC went private in 2013 in a $6.9bn deal funded by private equiteers.

CA has been public since the early 1990s, but its $4bn revenues in FY 2017 match the figure it recorded in 1997. The company has had a few better years in the interim, but plenty of worse years too, especially in the early 2000s as it recovered from a revenue recognition scandal that saw several senior execs jailed. Its stock price has drifted upwards to levels not seen since the 1990s in recent years and it pays decent dividends.

The company is famously acquisitive, racking up more than 200 acquisitions over its lifetime. Those buys were often niche products that users of legacy systems are likely to find useful, but it's been years since CA has had a hit. It's therefore hard to see how the company would excite shareholders seeking big returns, especially given cloud's potential to accelerate redevelopment and re-platforming of old code.

CA is in many ways similar to BMC, as both have long focused on those who develop and tend complex applications, generally on old-school platforms. Both are now chasing developers hard. Combining the companies would reduce a little overlap, concentrate the market for their management tools and perhaps give investors something to be more excited about. ®

SUBSCRIBE TO OUR WEEKLY TECH NEWSLETTER


Keep Reading

Citrix denies dark web claim of network compromise and ransomware attack

Says third party holding some business contact information has had trouble but its own infrastructure remains safe

TikTok to splurge €420m on Ireland data centre to get Euro-data into Europe by 2022

Nothing but love for regulators, but nothing for hyperscalers despite previous Google Cloud entanglement

Microsoft Defender casts a jaundiced eye over Citrix, slams services in quarantine on suspicion of being malware

You say broker, I say trojan, let's call the whole thing off

After three leisurely years, Citrix releases second long-term-service hypervisor

Version 8.2 supports bigger hosts, improves network security and bins old Windows versions as guests

Citrix warns of patch-ASAP-grade bugs in its working-from-home products, just as we're all working from home

Expect Citrix Endpoint Management gear to come under attack soon

'Work is an activity not a place' got tired on LinkedIn about three months ago, but Citrix just based its new logo on the idea

Logowatch Dot over an X instead of an I ‘illustrates our commitment to empowering every individual’

FYI: Someone's scanning gateways, looking for those security holes Citrix told you not to worry too much about

VIdeo Hackers hit honeypots hours after CISO downplays risk, proof-of-concept exploit code emerges

Where China leads, Iran follows: US warns of 'contract' hackers exploiting Citrix, Pulse Secure and F5 VPNs

Please just patch your infrastructure, begs US-CISA

Biting the hand that feeds IT © 1998–2020