LONDON and NEW YORK - Montagu has agreed to acquire a majority stake in BMC Helix in a carve-out transaction from BMC Software, according to a press release statement issued today.
KKR (NYSE:KKR), which acquired BMC Software in 2018, will maintain ownership of BMC and retain a minority stake in Helix. The private equity giant, with a market capitalization of $88.9 billion, has seen its stock decline 24.8% over the past six months. According to InvestingPro analysis, which offers detailed Pro Research Reports on over 1,400 US equities including KKR, the firm remains a prominent player in the Capital Markets industry despite recent market headwinds. The transaction remains subject to regulatory approvals and customary closing conditions.
BMC Helix operates as a ServiceOps platform providing service and operations management solutions to enterprise clients across financial services, healthcare, insurance, and retail sectors. The company has offices in Sunnyvale, California.
"We believe this transaction positions both BMC and Helix to move faster and stay sharply focused on their respective core priorities," said Ayman Sayed, President and CEO of BMC. "BMC, alongside KKR, will continue to support Helix’s journey by retaining a minority stake."
Ali Siddiqui will continue as CEO of Helix following the transaction. "This transaction marks a significant milestone for Helix," Siddiqui said. "With Montagu’s partnership, we will build on our market leadership, accelerate AI innovation, and continue delivering exceptional value to our customers."
Christoph Leitner-Dietmaier, Partner at Montagu, said the firm looks forward to partnering with Siddiqui and the management team to support Helix’s growth.
Montagu is a mid-market private equity firm with €15 billion in assets under management and has completed nearly 40 carve-out transactions since 2002.
Perella Weinberg served as financial advisor to Montagu, with Kirkland & Ellis as legal advisor. Jefferies LLC advised BMC and Helix, with Simpson Thacher & Bartlett LLP providing legal counsel.
Financial terms of the transaction were not disclosed.
In other recent news, KKR has been actively involved in several significant developments. The firm announced the launch of Helix Digital Infrastructure, focusing on data centers and AI applications, with over $10 billion in committed capital. This venture includes prominent investors such as the Kuwait Investment Authority, NVIDIA, and Vistra. Meanwhile, a consortium led by KKR and Energy Capital Partners has increased its bid for Ireland’s DCC to over £5 billion, following a previously rejected offer. Additionally, KKR’s portfolio company, ContourGlobal, has commenced operations at a solar-plus-storage facility in Chile, capable of delivering 200 megawatts of solar power for up to 6.5 hours post-sunset.
In other developments, KKR was among the firms contacted by Sen. Elizabeth Warren for information regarding data center deals, focusing on potential overlaps with utility ownership. Furthermore, KKR experienced a 5% decline in shares following a surge in redemption requests from Cliffwater’s business development company. These recent activities highlight KKR’s ongoing involvement in infrastructure and energy sectors, along with its participation in significant investment negotiations.
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