Dive Brief:
- BMC Software Inc. and CA Inc. are reportedly considering a deal to combine the two software companies and take CA private, according to Bloomberg, citing people familiar with the matter.
- BMC and CA are two of the largest U.S. providers of information technology management software, according to Fortune. CA is currently valued at about $15 billion.
- BMC Software went private about four years ago and is currently owned by Bain Capital and Golden Gate Capital. CA, BMC, Bain Capital and Golden Gate did not comment on the story, Bloomberg reports.
Dive Insight:
Since BMC went private, the firm has worked to optimize its cost structure to better compete in the highly competitive environment of Silicon Valley. Now that the company has stabilized, it is potentially looking to expand its portfolio.
But CA is a powerhouse in its own right. the company generates most of its revenue from mainframe software, according to The Motley Fool, an area that BMC may be looking to capitalize on. CA is focused on creating a modern software factory for the enterprise, and combined with BMC, the pair would dominate IT management software, dictating trends in the market and how evolving companies approach software.
Until a deal is signed, however, a merger between BMC and CA is just a rumor. But the impacts on the market are far-reaching. It could be one of the biggest enterprise IT deals of 2017, the successor to the major deal between Dell and EMC in 2016.
