BMC Completes Remedy Acquisition

Under the deal, first announced in September, BMC paid $355 million in cash and the assumption of certain operating liabilities of Remedy, a maker of service management software.

BMC provided Peregrine, which filed for Chapter 11 bankruptcy protection in September, with debtor-in-possession financing of $54 million. The financing, which was netted against the purchase price, has now been terminated.

"The combination of Remedy's industry-leading service management and problem resolution capabilities, paired with BMC Software's performance and availability management solutions, will provide customers with powerful, integrated service management solutions," said Bob Beauchamp, president and CEO of Houston-based BMC, in a statement. "Remedy's products will extend BMC's core market-leading data and systems management solutions to deliver the most comprehensive and integrated business service management solutions."

Remedy will operate as a separate organization within BMC, the company said. Peregrine's Remedy unit had 6,000 customers, 750 employees and more than 70 solution provider partners. It generated close to $250 million in revenue during the 12-month period that ended June 30.

BMC expects to report earnings of 7 cents to 10 cents per share, excluding special items, for its third quarter. The company expects earnings for fiscal 2003, excluding special items, to range from 32 cents to 39 cents per share.

Financial analysts expected BMC to report earnings of 9 cents per share for the third quarter and 38 cents per share for 2003, according to Thomson Financial/First Call.