BMC Software to cut jobs in $38m restructuring
11 April 2013
Systems management software vendor BMC Software has announced job cuts following the conclusion of a review into its operations. The restructuring will result in a pre-tax charge estimated at between $33m and $38m (£21m and £25m).
However, BMC did not put a number on the redundancies, although it has 6,900 full-time employees, according to financial reports.
The review and resulting restructuring was instigated following a shareholder revolt late last year, led by activist investor Elliott Associates. Its "standstill agreement" with BMC Software's management, which suspended hostilities between Elliott and BMC, ended on 6 April.
In a separate filing, Elliott said that it reserves the right to open further talks with BMC's management. Elliott had sought to force BMC into a sale after racking up a 9.6 per cent stake in the company, according to Bloomberg.
The ruckus instigated by Elliott had provoked the interest of a number of private-equity groups, according to reports, with KKR & Co and TPG Capital teaming up to form a consortium to bid for the company, and Bain Capital and Golden Gate Capital also joining forces to enter a bid.
Read more: http://www.computing.co.uk/ctg/news/2260729/bmc-software-to-cut-jobs-in-usd38m-restructuring#ixzz2RTwaYd5D