Mergers and Acquisitions

BMC Acquires Netreo to Enhance AIOps Solutions

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Software solutions provider BMC is set to acquire Netreo, an IT network and application observability solutions provider. Financial terms of the deal were not disclosed.

This is technology M&A deal number 101 that ChannelE2E and MSSP Alert have covered so far in 2024. See more than 2,000 technology M&A deals for 2024, 2023, 2022, 2021, and 2020 listed here.

BMC, founded in 1980, is based in Houston, Texas. The company has 9,815 employees listed on LinkedIn. BMC’s areas of expertise include ITSM, BSM, SaaS, cloud computing, asset management, CMDB, ITIL, workflow, discovery, job scheduling, virtualization, server provisioning, patch, vendor relationship, security, compliance, CIO dashboards, analytics, mobility, and data center automation.

Netreo, founded in 2000, is based in Huntington Beach, California. The company has 80 employees listed on LinkedIn. Netreo’s areas of expertise include enterprise network management appliances, network monitoring, server management, cloud monitoring, database monitoring, virtualization management, network traffic analysis, configuration management, application performance management, Microsoft 365, AWS, and Azure.

Strategic Benefits of the Deal

The deal will expand BMC's Helix platform capabilities, incorporating full-stack, open observability, and AIOps solutions to its operations, according to the company.

By integrating Netreo's technology, BMC aims to offer a unified platform that combines observability, AIOps, and ServiceOps solutions, aiding in faster and more efficient IT service delivery.

BMC's integration of Netreo's technologies is intended to support BMC's ongoing efforts to enhance its IT operations management and observability solutions.

BMC Acquires Netreo: Additional Insight

Margaret Lee, senior vice president and GM of Digital Service and Operations Management, BMC, commented:

"Now we can deliver full-stack, open observability from a unified platform with our generative AI innovation and provide customers with the real-time intelligence and issue resolution capabilities to set them apart from their competition. This also further accelerates BMC’s commitment to standards-based OpenTelemetry."

Jasmin Young, CEO, Netreo, said:

"BMC's vision to connect siloed operations and accelerate innovation across the enterprise resonated deeply with our goal to deliver a great smart and secure full-stack observability experience for our customers. Combining Netreo’s capabilities with the BMC Helix platform empowers our customers to bring data from their applications, infrastructure, and networks into the BMC Helix Observability and AIOps solutions for holistic visibility, enhanced root cause analysis, and automated remediation. I am excited to see this vision come to life as a part of BMC."

BMC Background

BMC is no stranger to M&A, having acquired Compuware from Thoma Bravo in March 2020.

BMC itself was acquired by by private equity firm KKR in 2018. BMC was acquired from a private investor group led by Bain Capital Private Equity and Golden Gate Capital together with GIC, Insight Venture Partners, and Elliott Management.