Compuware to be sold to Houston IT company
A Houston information technology company said it is acquiring Compuware Corp., the Detroit-based computer software company founded by Peter Karmanos.
BMC Software Inc. said Monday it has signed a definitive agreement to buy Compuware from Thoma Bravo LLC, a Chicago private equity firm. The companies did not disclose the financial terms of the transaction, but said the deal should be completed in the coming months subject to customary closing conditions.
BMC and Compuware executives were not available Monday for interviews. And Compuware, with deep roots in southeast Michigan, declined to comment on how many employees it has in the city, in Michigan or in sites outside the state.
“Both companies have been leaders in mainframe innovation over the last five years and we look forward to combining our complementary solution strengths and common passion for accelerating our customers’ successful digital transformations," Chris O’Malley, Compuware's CEO, said in a statement. "Without a doubt, a combined BMC and Compuware is the best, brightest, and most collaborative partner for a new generation of mainframe stewards.”
The tie-up seeks to strengthen BMC's ability to improve practices that aim to shorten the development life cycle of information technology systems. Compuware is one of BMC's largest acquisitions and is its third in the last two years.
“BMC continues to be focused on evolving and investing in our portfolio to address and even anticipate the needs of our customers, helping them to succeed today and into tomorrow,” Ayman Sayed, BMC's president and CEO, said in a statement.
New York private equity firm KKR & Co. Inc. acquired BMC in 2019. The partnership with Compuware brings together two complementary technology offerings, said John Park, KKR partner.
“We believe the combination of these two companies will create a leading, end-to-end platform focused on driving innovation for our mainframe customers worldwide," he said in a statement.
Karmanos founded Compuware in 1973. It went public in 1992 and moved to Detroit from Farmington Hills in 2003 — essentially beginning a corporate repatriation to the city that has continued to accelerate with Quicken Loans Inc. and its affiliated companies.
In 2014, Chicago-based Thoma Bravo LLC purchased Compuware for $2.4 billion. Under that sale, Thoma Bravo split Compuware into two separate companies: Detroit-based Compuware, a mainframe software business, and Boston-based Dynatrace, which was focused on real-time software management and maintenance.