BMC Software is buying Boole & Babbage in a $900 million stock swap, the system management company said today.
The merger will see BMC offer 0.675 common shares for each Boole & Babbage share. The transaction is expected to close in 60 to 90 days, subject to Boole & Babbage's stockholder approval, and that of US regulatory authorities.
"The merger extends BMC Software's undisputed leadership in application service management across the enterprise," said Max Watson, chairman and chief executive of BMC Software.
The deal was particularly appealing, Watson said, because of the coherence between the product lines, with very little overlap.
BMC specialises in providing software tools that help companies keep their critical business applications running properly. Like Boole & Babbage, it has its roots in the IBM mainframe world, and in the past 18 months has spent nearly $1.3 billion on acquisitions.
Boole & Babbage has been an acquisition target for some time, as it is perceived to have failed to achieve enough critical mass to compete against rivals such as Computer Associates and IBM. It specialises in service management for client/server systems.
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