BMC Software to Cut Jobs, Sees Pretax Costs of Up to $38 MillionJillian Ward
BMC Software Inc., a maker of software that manages corporate computer networks, said it plans to cut jobs after a review of its operations, resulting in pretax charges of $33 million to $38 million.
The costs for severance and termination will be recorded mostly in the quarter that ended in March and the current period, the Houston-based company said in a regulatory filing yesterday. BMC didn’t specify the number of jobs it is eliminating.
The cuts will come from business units and corporate functions across geographies, the company said. BMC had 6,900 full-time employees as of March 31, 2012, filings show. The company sells software that lets information-technology departments better manage fleets of servers and mainframes, configuring new machines and applying updates to older ones.
In a separate filing, activist investor Elliott Associates LP said its standstill agreement with BMC ended on April 6, and the firm reserves the right to further talks with the software company. BMC faced pressure from Elliott last year to consider a sale, and in July added two directors chosen by Elliott. Elliott is BMC’s second-largest shareholder, with a 9.6 percent stake, according to data compiled by Bloomberg.
BMC has attracted renewed buyout interest from private-equity funds, people with knowledge of the matter said last month. The renewed interest stemmed from the pending expiration of Elliott’s standstill agreement, allowing the investor to continue to push its agenda, one of the people said.
Shares of BMC rose as high as $44.75 in extended trading. The stock had fallen 1.5 percent to $44.45 at yesterday’s close, and has gained 12 percent in 2013.