(Adds background, shares)
By Greg Roumeliotis and Nadia Damouni and Soyoung Kim
NEW YORK, March 21 (Reuters) - Private equity firms are
joining forces in the auction of BMC Software Inc, three
people familiar with the matter said on Thursday, making it more
likely that the business software maker will be taken private in
a deal that would top $6 billion.
Shares of BMC jumped as high as 9 percent on the news and
were trading up 3 percent in late morning trading, giving the
company a market value of around $6.5 billion.
KKR & Co LP and TPG Capital LP have formed a
consortium, the people said on condition of anonymity because
the process is confidential. Bain Capital LLC and Golden Gate
Capital have separately also teamed up for the auction, the
The process is now past the first rounds of bids and
management presentations are taking place, the people said,
adding that final bids are expected in the next few weeks.
A BMC Software spokesman declined to comment. KKR, TPG,
Golden Gate and Bain also declined to comment.
BMC, which competes with Oracle Corp, SAP AG
, CA Inc and Compuware, was under
pressure from Paul Singer's activist hedge fund Elliott
Management to sell itself last year.
The company later said it had weighed strategic options and
had declined to buy back $1 billion in stock.
In January, BMC forecast a lower-than-expected profit for
2013 after reporting third-quarter results below Wall Street
estimates due to lower license bookings at its enterprise
services management and mainframe service management businesses.
Rival Compuware Corp, which has rejected a $2.3
billion bid from Elliot, is also exploring a sale and talking to
buyout firms to gauge takeover interest, people familiar with
the matter said last month.
(Reporting by Greg Roumeliotis, Nadia Damouni and Soyoung Kim
in New York; Editing by Maureen Bavdek and Tim Dobbyn)