Sep 22, 2002 (08:09 PM EDT)
BMC To Acquire Software Group From Bankrupt Peregrine
Read the Original Article at InformationWeek
Executives at infrastructure-management vendor BMC Software Inc. said Monday that the company's planned acquisition of Peregrine Systems Inc.'s Remedy group will enable it to offer a more-comprehensive product line. BMC announced its intention to acquire Remedy on Sunday. At the same time, troubled Peregrine said it had filed for voluntary Chapter 11 bankruptcy protection. Its deal with BMC--for $350 million in cash and BMC's assumption of Remedy's liabilities--is subject to a number of approvals, including that of U.S. Bankruptcy Court.
The sale would add Remedy's 6,000 software licensees to BMC's user base and give it Remedy's packaged service desk, change-management, and asset-management applications. Those products will help BMC deliver a line of products that help users achieve "an integrated IT and service process view for running their business," CEO Bob Beauchamp says.
Peregrine disclosed its bankruptcy filing on Sunday, in part blaming besieged auditor Arthur Andersen for its troubles. Peregrine said it has filed a lawsuit against Andersen alleging that the auditor is responsible for the company's inability to file audited financial reports for the past three years. Peregrine is seeking more than $1 billion in damages.
In a statement, Peregrine executives said that customers would be unaffected by the bankruptcy and that the company will continue to operate without interruption.