US technology-focused buyout firm Silver Lake Partners could sell IT management company Serena Software to private equity after talks with Attachmate Corp reportedly fell through.
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 has ended talks according to Reuters, which cited people familiar with the matter.
It said Silver Lake was still in talks with Veritas Capital Fund Management and Platinum Equity over a sale of the business, which provides software to help businesses streamline their management processes through their IT infrastructure.
The firm bought Serena for $1.2bn in 2006, a value it is thought it will struggle to equal in a sale. Reuters sources put the potential sale price at between $500m and $700m.
It said Serena launched two restructuring plans this year to address falling profits and boost operating margins, reducing its workforce by 8 per cent in the first quarter and 24 per cent in the second quarter.
Serena’s EBITDA in the 12 months ending Jan 31 was $74.4m, down from $85.8m over the same period a year ago.
The company had total outstanding debt of $410 million as of the end of July.
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