BMC Software, Inc. [NYSE: BMC], a leader in enterprise management,
today announced the completion of its acquisition of the Remedy assets
from Peregrine Systems, Inc. for $355 million in cash and the
assumption of certain operating liabilities of Remedy. BMC Software
will not assume any of the potential liabilities associated with the
existing shareholder lawsuits against Peregrine Systems or any other
liabilities of Peregrine Systems not directly related to the Remedy
business. BMC Software had provided Peregrine Systems with
debtor-in-possession financing of $54 million. This financing, which
was netted against the purchase price, has now been terminated.
Together, BMC Software and Remedy solutions deliver the strongest service
management offerings available today. "For years UBS has relied on BMC
Software and Remedy solutions to manage our most critical IT and business
services," said Franz Blaser, project manager, System Management for UBS
AG, one of the world's leading financial firms. "Now that Remedy is part
of the BMC family, we look forward to even greater synergies that will
allow us to further link service management with problem resolution."
Headquartered in Switzerland, UBS operates in over 50 countries and in all
major international financial centers. UBS is the world's leading provider
of private banking services and one of the largest asset managers globally.
Remedy will operate as a separate organization within BMC Software. Remedy
brings to BMC Software service management solutions currently employed by
more than 6,000 Remedy customers worldwide, with more than 10 million
users. In addition, Remedy's extensive partner and alliance networks extend
Remedy and BMC Software's reach to enterprises worldwide. Remedy products
consist of Action Request System® and a family of packaged applications,
including help desk, asset management and customer support.
"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, BMC Software. "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."
As today's IT enterprises evolve, industry experts recognize the importance
of combining problem resolution and enterprise management. "The pressure
is on IT organizations to execute service and support delivery with a focus
on the business management discipline," said Kris Brittain, research
director, Gartner, Inc. "To do this requires combining a solid service
desk suite, proven workflow technologies that can extend to other areas,
and complete integration within a robust set of enterprise management
solutions." With the completion of the Remedy acquisition, BMC Software is
poised to deliver solutions that accomplish this goal.
Action Request System (AR System®)
Remedy's flagship product, Action Request System, is a comprehensive
service management platform and flexible development environment used to
rapidly design, develop and deploy applications that automate and extend
business processes.
Packaged Applications
Remedy's industry leading service management applications incorporate
best-practice functionality for IT service management, customer service and
support solutions (such as Remedy Help Desk, Remedy Asset Management,
Remedy Change Management, Remedy Customer Support, and Remedy Crisis
Response) and are built on Remedy's highly adaptable Action Request System.
Benefits of leveraging a unified platform include out-of-the-box
interoperability and easy integration.
Outlook
The following statements are based on current expectations and reflect the
Remedy acquisition. These statements are forward looking, and actual
results may differ materially.
As discussed during the initial acquisition conference call in September,
the company continues to expect that this transaction will be accretive to
earnings within 12 months. Including the partial quarter results of
Remedy, BMC Software now expects third quarter fiscal 2003 earnings per
share, excluding special items, in the range of $0.07 ? $0.10. BMC
Software now expects fiscal 2003 diluted earnings per share, excluding
special items, in the range of $0.32 ? $0.39. Excluding the effects of
required write-downs in deferred maintenance revenues, this transaction
would be accretive to earnings immediately.
BMC Software also expects the transaction to be positive from a cash flow
basis. Given the strength of cash flows from operations year-to-date and
the positive influence on cash flow from the Remedy acquisition, the
company now expects fiscal 2003 cash flow from operations to be
approximately $500 million. This is $50 million higher than the prior
estimate of $450 million.
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For Additional Information
BMC Software has scheduled a financial analyst conference
call for 9:00 a.m. CST today to discuss the impact of this
acquisition. Interested parties may access the call by
dialing 719-457-2732 and using the passcode BMC.
Investors will also have the opportunity to listen to the
conference call and view a financial presentation over the
Internet through the Investor section of the BMC Software
Web site at www.bmc.com/investors. To access a telephonic
replay of the conference call, which will be available for
one week, dial 719-457-0820 and use the passcode 262. A
replay of the webcast will also be available on the
company's website.
About Remedy
Remedy® is a BMC Software company with a customer base
that includes 80 percent of the Fortune 100 companies and
60 percent of the Fortune Global 500 companies. The
company focuses on automating service-related business
processes through a complete suite of best practice
Service Management applications, including IT Service
Management and Customer Service and Support solutions. All
Remedy products leverage the highly flexible Action
Request System®, a comprehensive development environment
that delivers business process authoring capabilities to
meet the unique requirements of organizations today and
into the future. Visit www.remedy.com to learn more.
About BMC Software
BMC Software, Inc. [NYSE:BMC], is a leader in enterprise
management. The company focuses on Assuring Business
Availability for its customers by helping them proactively
improve service, reduce costs and increase value to their
business. BMC Software solutions span enterprise systems,
applications and databases. Founded in 1980, BMC Software
has offices worldwide and is a member of the S&P 500, with
fiscal year 2002 revenues of approximately $1.3 billion.
Visit www.bmc.com to learn more.
Media:
Newsengine PR
Ineke Tiesinga
Paasheuvelweg 26 - 1105 BJ Amsterdam ZO
+31 20 567 21 70 or ineke.tiesinga@newsenginepr.com
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