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.
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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.
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