This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Acquisition Of BMC Software, Inc. By A Private Investment Group Led By Bain Capital And Golden Gate Capital Together With GIC Special Investments Pte Ltd And Insight Venture Partners May Not Be In The Best Interests Of BMC Shareholders

SAN DIEGO and HOUSTON, May 7, 2013 /PRNewswire/ --  Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of BMC Software, Inc. (NASDAQ: BMC) by a private investment group.  On May 6, 2013, BMC announced that it had entered into a definitive merger agreement whereby BMC shareholders will receive $46.25 in cash for each share.

(Logo: http://photos.prnewswire.com/prnh/20130103/MM36754LOGO)

The Board of Directors' Actions May Prevent BMC Shareholders from Receiving Maximum Value for Their Stock

Robbins Arroyo LLP's investigation focuses on whether the board of directors at BMC is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in the merger or whether they are seeking to benefit themselves.

The $46.25 merger consideration represents a premium of only 1.83% based on BMC's closing price on May 3, 2013, the last trading day prior to the merger announcement.  Further, the $46.25 offer price is substantially below the target price of $50.00 set by an analyst at Susquehanna Financial Group on January 29, 2013, a target price of $48.00 set by an analyst at Jeffries on May 10, 2012, and a target price of $47.00 set by an analyst at RBC Capital Markets on January 29, 2013.  Moreover, BMC has traded above the offer price as recently as April 3, 2013, reaching a high of $46.30.



Is the Acquisition Best for BMC and Its Shareholders?

On January 28, 2013, BMC released its fiscal 2013 third quarter financial results reflecting record performance for total revenue, maintenance revenue, and professional services revenue.  Specifically, BMC reported third quarter total revenue of $580.2 million, including maintenance revenue of $288.7 million, and professional services revenue of $59.2 million.  Further, BMC reported that its SaaS business customers and revenue more than doubled over the previous year, growing to approximately 550 active customers.  In announcing these results, Bob Beauchamp, BMC's Chairman and CEO, stated, "BMC Software's strategy, our target markets, our position in those markets, and our product and technology leadership continue to present significant opportunities for our company and our shareholders."

Given these facts, the firm is examining the board of directors' decision to sell BMC now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.   

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,912.11 -70.48 -0.42%
S&P 500 1,969.95 -8.96 -0.45%
NASDAQ 4,442.6980 -2.2110 -0.05%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs