KKR Weighs Sale or IPO for $15 Billion BMC Software

Ryan Gould, Dinesh Nair and Katie Roof, Bloomberg News

Computer code and text displayed on computer screens. Photographer: Bloomberg Creative Photos/Bloomberg Creative Collection , Bloomberg Creative

(Bloomberg) -- KKR & Co. is again reviewing options to exit IT solutions firm BMC Software Inc., which could be worth about $15 billion including debt in a sale or initial public offering, people familiar with the matter said.

The buyout firm has received inbound interest from other private equity firms interested in potentially acquiring Houston-based BMC, according to the people, who asked not to be identified discussing confidential information.

While no final decisions have been made, KKR still favors an IPO of the business, which filed confidentially last year with the US Securities and Exchange Commission for a listing, they said. BMC had tapped Goldman Sachs Group Inc. as lead underwriter for a listing, Bloomberg News reported at the time.

A representative for KKR declined to comment. A spokesperson for BMC didn’t immediately respond to requests for comment.

KKR’s deliberations come as buyout firms more broadly look to monetize investments after a lull in IPOs and mergers and acquisitions. Last month, a consortium led by Leonard Green & Partners announced the $18.5 billion sale of SRS Distribution to Home Depot Inc., marking one of the biggest private equity exits in years.

KKR acquired Houston-based BMC in 2018 for $8.3 billion, including debt. BMC makes software for helping companies with tech support, and has worked with the likes of Transport for London, Sky Italia, Carrefour and Iberdrola.

(Updates with Goldman Sachs in third paragraph.)