Private equity trend continues

Serena Software and Enterasys to be acquired by private equity firms

The buyout of IT companies by private equity firms continues, with enterprise content management vendor Serena Software and networking gear maker Enterasys both agreeing to be acquired by private equity companies.

In a joint venture, The Gores Group and Tennenbaum Capital Partners will buy Enterasys for US$386 million (NZ$565 million) and Serena will be acquired by Silver Lake Partners for US$1.2 billion.

The deals come close on the heels of private equity buyouts of Geac and FrontRange and the privatisation of Computer Associates’ Ingres database division.

In New Zealand, one IT manager has reacted positively to the buyout of Geac.

Tony Darby, acting GM of technology, information and administration operations at the Auckland Regional Council, says “we’re looking forward to some improvements in our relationship with Geac as a result of [the acquisition]”.

The ARC is one of Geac’s biggest sites in New Zealand, with an arrangement under which EDS operates the council’s Geac Pathway billing system to collect ARC rates from Auckland’s city councils.

“We’re in quite a fortunate position having EDS between us and Geac,” Darby says.

FrontRange also has a significant customer base in New Zealand and Tony West, IT manager at Land Transport New Zealand, a FrontRange user, says the purchase of FrontRange by Francisco Partners “won’t have much impact” and “the guys it’s been sold to are in the business of recognising good business opportunities.

“I can’t see any downside,” he says.

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Tags private equity firmsenterasysserena software

More about ARCCA TechnologiesEDS AustraliaFrancisco PartnersFrontRangeSerena SoftwareSilver Lake PartnersWest

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