BMC Software Inc. on Thursday announced that it has closed its $355 million acquisition of Peregrine Systems Inc.s Remedy business unit.
Houston-based BMC will allow Remedy, which markets the Action Request System problem tracking and workflow platform, to operate as an independent unit.
Remedy, along with ARS, also brings a series of applications that work with the platform, including Remedy Help Desk, Remedy Asset Management, Remedy Change Management, Remedy Customer Support and Remedy Crisis Response.
Remedy brings to the $1.3 billion enterprise management supplier service management tools used by a “fiercely loyal” customer base of about 6,000 companies, with more than 10 million users, as described by BMC President and CEO Bob Beauchamp on an analyst call earlier today.
“The Remedy business is a strategic fit for BMC that will help us to achieve our vision of being the leader in enterprise management systems,” said Beauchamp on the call. BMC intends to create “an industry powerhouse with the most comprehensive integrated service management solutions,” he added.
BMCs plan for Remedy is to keep its organization intact as a separate unit and to accelerate roadmaps for future Remedy product plans.
Toward that end, teams from both organizations are working to accelerate integration roadmaps for Remedy Service Desk, Remedy Change Management and Remedy Service Management with BMCs MainView and Patrol product lines.
BMCs Patrol Enterprise Manager already works with Remedy Help Desk. “Any event in an enterprise can open and populate a trouble ticket,” described Beauchamp.
BMC has a strategy to continue to look at other acquisition opportunities, but “we will continue to be conservative. Dont expect us to bring our cash balance down to zero,” said Beauchamp.
Meanwhile, Peregrine, looking ahead, plans to build on its Consolidated Services Management software and services offerings.
“We will be focused on our core competency—helping organizations unlock the value of the enterprise by improving service delivery across the business,” said Peregrine CEO Gary Greenfield, in a press release.
: BMC Closes Remedy Deal for $355 Million”>
Peregrines sale of its Remedy business unit was undertaken as part of a court-approved auction conducted earlier this month.
The software maker has been suffering since May 2001 when accounting irregularities to the tune of $100 million were discovered.
Since that time the company has suffered a management hemorrhage—losing its CEO, CFO and chairman—shareholder lawsuits, a restatement of its finances for fiscal years 2000, 2001 and 2002, and a delisting from the NASDAQ stock exchange.
As a result, this fall Peregrine Systems and Peregrine Remedy Inc. filed for reorganization under Chapter 11.
The proceeds of the Remedy sale will be used, in part, to repay the $54 million in debtor-in-possession financing provided by BMC to Peregrine.