BMC to buy BladeLogic

BMC Software is to purchase BladeLogic, a maker of data centre automation software.

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BMC Software is to purchase BladeLogic, a maker of data centre automation software. BladeLogic's board of directors has unanimously recommended that the company's stockholders accept BMC's offer, which will occur within the next 10 days.

BMC said the pending purchase, valued at $800m (£398) would fit into its "business service management" portfolio. The two companies have already worked together to integrate their products, according to BMC. The company said that BladeLogic was "the fastest growing company in the fastest growing segment of IT management software".

This would be the latest in a string of recent acquisitions by BMC, which include ProActiveNet, maker of an IT "early warning system," and RealOps, a company specialising in runbook automation software.

Bob Beauchamp, BMC's CEO, said during a conference call that the redundancy between the companies' portfolios is "minimal," which "stands in stark contrast to the overlap seen in acquisitions by many of our competitors."

"We will offer day-one, customer-proven product integration," he added.

Dev Ittycheria, CEO of BladeLogic, also described the company's products as complementary, and declared the pending deal will make BMC the "obvious choice for an IT executive when it comes to managing the data centre."

Last week, Citigroup named BladeLogic, among other tech firms, as being ripe for acquisition. Beauchamp indicated that BMC had designs on the company for a while. "We have coveted this business for a long time," he said. "All our evaluations of this technology ... showed BladeLogic was the best product of its type, period. Convincing them to sell this was not an easy process."

Ittycheria said BladeLogic had been "very highly focused on executing [its] stand-alone strategy when approached by BMC."

The entreaty prompted BladeLogic to reach out to a "group of alternative potential buyers who had expressed interest in the past ... ultimately BMC proposed the most compelling transaction," he added.

Stephen Elliot, an analyst with IDC, said via e-mail that the pending deal makes sense for BMC, but argued that the integration work would be broad.

BladeLogic has developed a "solid product portfolio through roles-based controls, granular change and configuration visibility, and application release management," he said, but "BMC must now work hard to integrate a group of products across the client, [runbook automation], server, and application stack."

BMC competes with the likes of IBM and Hewlett-Packard, the latter of which announced a set of data center-related products and services on Monday.

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