Peregrine Sells Help-Desk Unit



Systems-management software vendor Peregrine Systems last week filed for bankruptcy protection and agreed to sell its Remedy help-desk software business to BMC Software for $350 million in cash. Peregrine says Remedy's sale will help it reduce debt and continue operations.

BMC would gain about $250 million in revenue from 6,000 licensees of Remedy, which adds customer-support and help-desk functions to BMC's application-monitoring products. BMC says the deal will add to its earnings per share within a year.

Peregrine sought Chapter 11 protection after it was unable to file audited financial statements for the past three years. The company blames its auditors and last week filed a lawsuit against Arthur Andersen and others seeking more than $250 million in damages.

Financial misstatements have wiped out 20% of the company's reported revenue in the past three years, and Peregrine is under investigation by the Securities and Exchange Commission for misstating revenue.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Email This  | 
Print  | 
RSS
More Insights
Copyright © 2019 UBM Electronics, A UBM company, All rights reserved. Privacy Policy | Terms of Service