BMC buys Compuware from Thoma Bravo in mainframe software market consolidation deal

KKR-owned BMC Software to create mainframe giant with acquisition of Thoma Bravo-owned Compuware

BMC Software is to acquire Compuware from private equity firm Thoma Bravo in a deal that will consolidate the market for mainframe software tools.

BMC Software is currently owned by KKR, another private equity firm, in an October 2018 acquisition. It had been taken private by a consortium of private equity firms in a $6.9 billion deal completed in September 2013.

Compuware, meanwhile, was taken private by Thoma Bravo for $2.5 billion in December 2014, with Compuware's Dynatrace application performance management (APM) business becoming a separate, independent entity straight after the deal was completed.

Since going private, Compuware has focused purely on its mainframe business, but introduced new tools - and features into existing tools - intended to help organisations extend DevOps processes to the mainframe. That focus, according to CEO Chris O'Malley, has helped to turn around the Compuware business, and to drive it to modest year-on-year revenue growth.

"Compuware is the proven and trusted partner in mainstreaming the mainframe for Agile and DevOps, and we are thrilled to now be joining forces with BMC in reinventing the future of the platform," said O'Malley.

He added: "Both companies have been leaders in mainframe innovation over the last five years... Without a doubt, a combined BMC and Compuware is the best, brightest, and most collaborative partner for a new generation of mainframe stewards."

John Park, a partner at KKR, said: "The acquisition of Compuware brings together two highly complementary, best-in-class technology offerings. We believe the combination of these two companies will create a leading, end-to-end platform focused on driving innovation for our mainframe customers worldwide."

Thoma Bravo had also been in the running to acquire BMC Software back in 2018, presumably with the intention of merging it with Compuware, but lost out to KKR.