KKR explores $1.5 billion sale of BMC Helix as AI concerns reshape software deals

KKR explores $1.5 billion sale of BMC Helix - Reuters By Investing.com

Investing.com -- Private equity firm KKR is exploring a sale of its information services provider BMC Helix, which could fetch as much as $1.5 billion, according to reporting from Reuters, citing people familiar with the matter. Helix, which is being advised by investment bankers at Jefferies, has already received initial bids from other private equity firms and corporate buyers, the sources said, requesting anonymity to discuss matters that are not public. The planned sale would test appetite for software deals at a time when concerns about artificial intelligence's potential to disrupt the sector have weighed on valuations and slowed dealmaking. BMC Helix is an AI-driven IT service management platform that helps enterprises automate service desks, manage incidents and assets, and monitor hybrid IT environments. It competes with other IT service management providers, including ServiceNow. The business generates around $150 million in earnings before interest, taxes, depreciation and amortization and $750 million in annual recurring revenue, the sources said. The sale of the company could value Helix at eight to 10 times its core profit, or as much as $1.5 billion, the sources added. KKR plans to begin groundwork on an initial public offering for BMC as early as 2026 after the sale of Helix, the sources said. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

KKR explores $1.5 billion sale of BMC Helix, sources say

NEW YORK, Feb 20 (Reuters) - Private equity firm KKR is exploring a sale of its information services provider BMC Helix, which could fetch as much as $1.5 billion, according to people familiar with the matter. Helix, which is being advised by investment bankers at Jefferies, has already received initial bids from other private equity firms and corporate buyers, the sources said, requesting anonymity to discuss matters that are not public. KKR and Jefferies declined to comment, while BMC Helix did not respond to a request for comment. The planned sale would test appetite for software deals at a time when concerns about artificial intelligence's potential to disrupt the sector have weighed on valuations and slowed dealmaking. BMC Helix is an AI-driven IT service management platform that helps enterprises automate service desks, manage incidents and assets, and monitor hybrid IT environments. It competes with other IT service management providers, including ServiceNow. The business generates around $150 million in earnings before interest, taxes, depreciation and amortization and $750 million in annual recurring revenue, the sources said. The sale of the company could value Helix at eight to 10 times its core profit, or as much as $1.5 billion, the sources added. The sale follows KKR's 2025 decision to spin off the Helix product into an independent company focused on IT service and operations. Its previous parent, BMC Software, has continued to focus on its mainframe automation and software business. KKR plans to begin groundwork on an initial public offering for BMC as early as 2026 after the sale of Helix, the sources said. Software valuations have taken a hit in recent weeks after public market investors began to worry that advancements in artificial intelligence could disrupt software business models. The software selloff has also put some M&A and IPO activity on pause. (Reporting by Milana Vinn in New York; Editing by Echo Wang and Lisa Shumaker)