KKR plans $2 billion sale of BMC Helix
KKR prepares to sell BMC Helix in $2 billion deal
KKR & Co. is preparing to sell BMC Helix, the IT management arm of BMC Software, in a deal that could be valued at $2 billion, including debt.
Key Takeaways
- KKR & Co. is working with advisers to sell BMC Helix, the IT management division of BMC Software, with a valuation around $2 billion, including debt.
- BMC Helix provides software tools for managing organizational technology infrastructure, competing with industry leaders like ServiceNow Inc.
- The decision to separate BMC’s units followed confidential IPO filings in 2023, where the company was expected to be valued at up to $15 billion.
KKR Readies BMC Helix Sale Valued at $2 Billion
KKR & Co., a major alternative asset manager, is preparing to sell BMC Helix in a deal valued at approximately $2 billion, including debt. The company has enlisted advisers to manage the sale, as BMC Helix is being formally separated from its parent company, BMC Software, reports Bloomberg.
KKR & Co. Inc. (KKR) share price dynamics (2021 - Feb 2025) Source: TradingView
BMC announced the split in October 2024, stating that both units would begin operating independently in early 2025. Sources familiar with the matter indicated that discussions are ongoing, though a final deal has not been confirmed. Both KKR and BMC have declined to comment on the potential sale.
BMC Helix Competes in IT Management Space
BMC Helix specializes in developing software tools that monitor and manage an organization’s entire technology infrastructure. Its offerings help businesses streamline IT operations, manage digital services, and ensure system reliability.
In this space, BMC Helix faces strong competition from established industry players like ServiceNow Inc., which has a dominant presence in IT service management. As businesses continue digital transformations, the demand for robust IT management solutions remains high — a factor that could drive interest in the sale of BMC Helix.
BMC’s Split Follows Scrapped $15 Billion IPO Plans
BMC Software’s decision to split its business follows earlier plans for an initial public offering (IPO) that were ultimately shelved. In 2023, BMC confidentially filed for an IPO with an anticipated valuation of up to $15 billion.
The separation of BMC Helix from its parent company aligns with a broader trend of corporate breakups aimed at enhancing operational focus and maximizing shareholder value. This strategic realignment sets the stage for potential investment opportunities and possible acquisition interest in BMC Helix.
KKR’s preparation to sell BMC Helix marks a significant move in the IT management sector, with the business expected to fetch a $2 billion valuation. The ongoing corporate restructuring at BMC Software, following a shelved IPO, highlights the company’s shift toward operating as two independent entities. Despite the competitive landscape, BMC Helix’s established market position makes it an attractive target for potential buyers.
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