Private equity firm KKR is conducting a process to sell BMC Helix, an information services business, with potential proceeds reaching as high as $1.5 billion, sources familiar with the matter said.
Investment bank Jefferies is advising Helix as the company solicits offers. According to the sources, who spoke on condition of anonymity because the deliberations are not public, the unit has already attracted initial bids from both other private equity firms and corporate acquirers.
The contemplated divestiture arrives at a time when investors and buyers are evaluating software assets more cautiously. Concerns about the potential for artificial intelligence to alter the software landscape have put downward pressure on valuations and have contributed to a slowdown in dealmaking activity in the sector, the sources said.
What BMC Helix does
BMC Helix is an AI-driven IT service management platform designed to help enterprise customers automate service desk operations, manage incidents and assets, and monitor hybrid IT environments. The product competes with other IT service management providers, including ServiceNow.
Financials and valuation
Sources reported that the business produces roughly $150 million in earnings before interest, taxes, depreciation and amortization (EBITDA) and about $750 million in annual recurring revenue (ARR). Based on those figures, the sale could value Helix at approximately eight to 10 times its core profit, which equates to a potential transaction value of up to $1.5 billion.
Broader plans
Following the planned sale of Helix, KKR intends to begin preparatory work for an initial public offering of BMC as early as 2026, according to the sources. The timing and execution of any IPO are contingent on the completion of the Helix sale and subsequent strategic decisions.
Details remain limited publicly, and the people providing the information requested anonymity because the negotiations and potential sale process have not been disclosed.