NASDAQ-listed data center automation company BladeLogic has agreed to be acquired by Texas-headquartered BMC Software for approximately $800 million (€508 million), or $28 per share, resulting in a lucrative exit for its US venture backers.
Since the Massachusetts-based company was founded in 2001, it has raised approximately $35 million in venture capital during four funding rounds between 2001 and 2005. Initial backers Battery Ventures and Bessemer Venture Partners were later joined by Globespan Capital Partners and MK Capital.
It's a nice story of early stage investing paying off
Battery was involved with BladeLogic since inception with former entrepreneur-in-residence Vijay Manwani serving as a company co-founder. The firm owned 4.7 million BladeLogic shares and currently holds 2.9 million shares accounting for approximately 10 percent of the company, according to a spokeswoman.
After completely exiting its position, Battery expects to see a return of 19 to 20 times its investment.
“It’s a nice story of early stage investing paying off,” said vice president of marketing Karen Bommart.
BladeLogic has yet to reach profitability, reporting a loss of $174,000 in 2007 and a loss of $8,251,000 in 2006. However, BladeLogic is the fastest growing company in the fast growing data automation segment of IT management software according to BMC.
The segment was “recognized as a strategic, growth market by BMC and bought at a premium”, according to Bommart.
The acquisition will be conducted by means of a tender offer for all of the outstanding shares of common stock of BladeLogic, which listed in July 2007, followed by a second-step merger.