Question

find an article about a merger or acquisition that was announced within the last month. you should include a brief summary of the deal, along with your thoughts on the deal. To help you get started, here are some issues to consider:

Is this a good deal (i.e., is this deal likely to create value for the acquiring firm)?

What synergies does the deal create? Are these synergies realizable?

What is the catalyst for the deal? Why is the deal happening now?

minimum 300 words

Answer 1

BMC Software buys Compuware

On March 2, 2020, BMC Software, Inc. is an American software company. The company offers SaaS-based services in areas which includes cloud computing, IT services management and delivery support solutions. Compuware is also an American company whose products are aimed at the information technology departments of very large businesses. The services of this company include testing, development and performance management of software running in the computer system.

Is this a good deal?

This acquisition will help not only both the companies which are continuously delivering the best products to meet the requirements of different companies around the globe but will also help the customers to manage their businesses by providing better cybersecurity, operations and application development. This acquisition will help BMC to do much more sophisticated innovations which are the requirements of their customers.

What synergies does the deal create?

As both, the companies are into IT sector this acquisition the customers will get best-in-class technology solutions. These synergies will create an end to end platform which is focused on driving on innovative technological solutions for all the customers across the globe.

Also, we need to note that this isn't the first time BMC and Compuware have worked together. Both the companies announced a partnership in 2015 and planned to work together in future. Now, this deal has allowed them to sell to each customer and this will cut down the market share of their competitors like IBM Corp. etc.

Furthermore, as the overlap of the product portfolios in these companies is very less, as both the companies are focused on different aspects of technology, now BMC will have a bigger portfolio. Also, Compuware has also set an example that how they uplifted the market value of their company to such a point that it becomes a valuable deal from the acquisition point of view.