Serena Software founder is joining hands with private equity firm HGGC to purchase the application development software vendor from Silver Lake Partners.
The financial terms of the transaction were not disclosed, but people briefed on the matter said HGGC paid about $450 million, in the first investment out of its second buyout fund. That price is substantially less than the $1.2 billion Silver Lake paid in 2006.
A spokesman for HGGC declined to comment on the purchase price.
The transaction will leave HGGC responsible for continuing efforts to turn around Serena, which makes products to help companies manage their software services. The overall industry is growing, the company argues, estimating the market at about $8 billion.
But Serena has lost money in three of its six most recent fiscal quarters. For the three months that ended Oct. 31, it lost $2.5 million on revenue of $46.1 million.
(But using adjusted earnings before interest, taxes, depreciation and amortization, which excludes restructuring charges, the company reported a slight gain for the quarter, to $21.9 million.)
Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Serena Software, Serena Software, Silver Lake Partners.