KKR-Backed BMC Plans IPO Valuing It at Up to $15 Billion

BMC Software, a technology company owned by KKR & Co., has confidentially filed for an initial public offering, according to people with knowledge of the matter.

(Bloomberg) — BMC Software, a technology company owned by KKR & Co., has confidentially filed for an initial public offering, according to people with knowledge of the matter.

The company, which could be valued at $14 billion to $15 billion, has tapped Goldman Sachs Group Inc. as lead underwriter, said the people, who asked not to be identified because the information is private. An IPO could occur later this year if the market for new listings rebounds, though it’s possible that BMC could pursue other options, such as a sale, they said.

KKR acquired the Houston-based company in 2018 for $8.3 billion, including debt. In 2020, BMC, which is led by Chief Executive Officer Ayman Sayed, acquired Compuware for $1.5 billion. Its revenue growth has accelerated under its current private equity ownership, one of the people said.

Read more: CEO of KKR-Backed BMC Plots Road Ahead: Q&A

Representatives for KKR and Goldman Sachs declined to comment. A spokesperson for BMC didn’t immediately respond to a request for comment.

The company counts Transport for London, Sky Italia, Carrefour and Iberdrola among its global customer roster, according to its website.

The filing comes as the US IPO market is starting to warm. This month, solar power equipment maker Nextracker Inc. raised $734 million including so-called greenshoe shares, the most on a US exchange since October when self-driving technology company Mobileye Global Inc. raised $990 million.

Still, 24 companies have raised only $2.53 billion on US exchanges since Jan. 1, according to data compiled by Bloomberg. That compares with 74 listings for a total of $11.5 billion at this point last year, the data show.

(Updates with earlier IPOs in sixth paragraph.)

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