Mid-market buyout house HGGC has followed the official launch of its $1bn-targeting second fund by agreeing to buy IT app developer Serena Software from Silver Lake Partners.
HGGC entered exclusive talks to buy the asset in February, three months after it emerged Silver Lake had put the business on the block.
Silver Lake bought Serena for $1.2bn in 2006, a value it is not believed to have equalled in the sale, with the deal expected to value the company at between $450m and $500m.
No financial details have been released by any of the parties.
Silver Lake hired Barclays to run an auction process in the summer following at least one previous failed attempt to exit the business.
Attachmate was thought to have a strong chance of picking up the asset in a trade sale but ended talks before a deal could be reached.
Veritas Capital Fund Management and Platinum Equity were also thought to have been in talks to buy the business, which provides software to help businesses streamline their management processes through their IT infrastructure.
HGGC principal Hudson Smith said, “In almost every industry today, software is a key driver of innovation and competitive differentiation.
“Serena’s application development and delivery solutions are enabling IT organizations to deliver more frequent, higher quality application releases while remaining cost efficient and compliant.
“The Serena management team, led by CEO Greg Hughes, has brought new energy and direction to the business, provided outstanding support for its customers and delivered exceptional new products that capitalize on the increasing need for speed with control in modern IT organizations.”
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