Comparex Africa, a VAR of the Remedy helpdesk application suite, has welcomed the news of Remedy`s acquisition by BMC Software as "a highly positive development for our many clients in South Africa".
BMC Software, a leading enterprise management vendor, has announced its intent to purchase substantially all of the assets and assume all of the liabilities of Peregrine Remedy, Inc for $350 million in cash. BMC has also agreed to provide Peregrine with immediate debtor-in-possession financing of up to $110 million to be subtracted from the purchase price.
The acquisition follows Peregrine`s announcement on September 22 that it had filed voluntary petitions for reorganisation under Chapter 11 of the U.S. Bankruptcy Code for itself and subsidiary, Peregrine Remedy, Inc. Peregrine Systems acquired Remedy Corporation, then the largest helpdesk company in the industry, in August last year in a stock deal valued then at US$1 billion in an effort to extend its depth, scope and reach. Peregrine, once the sixth largest software company in the world, has imploded since May this year, its management team resigning, and its share price plummeting to around 30c. It has had to sell off a number of divisions, and has been delisted from the Nasdaq.
The BMC deal will include the Remedy Service Management Suite, Customer Service and Support, and Action Request System. The agreement will give Peregrine $110 million operating capital during the bankruptcy process, thereby placing BMC in the role of its primary creditor.
The move is seen as beneficial for Remedy clients due to their exposure to the combined product range of the two companies.
"Many of South Africa`s largest organisations depend on Remedy for their smooth and continued operation," says Rodney Hood, managing executive of Comparex Africa Customer Oriented Applications (COA), which has marketed and supported Remedy for the past five years and has more than 30 blue-chip clients. "Peregrine`s difficulties were unfortunate and led to uncertainty and confusion for these organisations. Remedy`s new position will provide reassurance that the company`s future and that of its products is secure.
"The change will also enable COA as a VAR of Remedy to have sub-distributors throughout Africa, an option we will pursue."
As an independent company, Remedy was renowned for its innovation and the degree of flexibility it afforded customers, which were able to adapt its helpdesk development environment to their unique requirements. The market share BMC will have following the Remedy acquisition positions it as a global player in the IT service desk market. BMC will enhance its enterprise management portfolio with service desk, change management and asset management functions. These offerings will enable BMC to deliver true end-to-end service management solutions for its customers.
More importantly, the deal adds leading and proven workflow technologies that BMC can extend to other areas. This acquisition provides BMC a world-renowned service desk product as a direct competitor to offerings from Computer Associates International and Hewlett-Packard. In the year after the deal closes, the key to its success will be BMC`s ability to manage the transition and the integration of the 750 personnel in the Remedy division through the first quarter of 2003. By 2004, it is estimated that Remedy will return to the position of leader in the IT service desk market.
"This deal is certainly positive for Remedy customers and prospects as it provides an opportunity for the continued growth of the Remedy product family, which should gain a solid financial base within the BMC family," says Hood.
Share
Editorial contacts