Why BMC Sale Could Affect Jobs In Houston

Ariel shot of Houston-based BMC Software [flickr image by Becky Lai]
The announcement that a Houston-based business software giant will be sold to a private equity group could mean eventual layoffs and other changes at the company.

BMC Software, which is headquartered in West Houston, has agreed to be bought by a private equity group for nearly $7 billion. It's a big change for a local company that may have fallen behind when it comes to an internet business model.

That's according to internet attorney Travis Crabtree with Texas-based firm Looper Reed and McGraw. He says unhappy shareholders may have forced the deal.

"The opportunity is out there to transform some of what they were doing to an internet-based platform to make it widely available for more customers and so they were kind of pressuring the company to do this and the added capital by this purchase may allow them to do that." 

Crabtree says it's not uncommon for layoffs to follow an equity firm's purchase of a big company. There are around 1100 BMC employees in Houston. He says the purchase could also put a dent in the city's hopes for more technology companies.

"Houston is not known as the technology hub like Silicon Valley and BMC Software was one of the big software companies in the city of Houston. So there is some concern that with the new buyers coming in there could be some changes and some shifting of the focus outside of Houston into Silicon Valley or other areas and it would be a shame for the city of Houston to lose out on what once was its crown-jewel in the software business."
 
The deal will likely be complete later this year, although BMC has 30 days to find a better deal.

Bio photo of Jack Williams

Jack Williams

Director of News Programming

News Director Jack Williams has been with Houston Public Radio since August of 2000. He's also a reporter and anchor for Houston Public Radio's local All Things Considered segments...