BMC Software Buys Aeroprise

BMC Software Inc. ( ( BMC - Analyst Report ) ) recently announced the acquisition of Aeroprise, a technology service provider. Aeroprise provides tech support functions to all leading mobile devices. However, financial terms of the acquisition were not disclosed.

The newly acquired solution is expected to enhance BMC Mobility’s IT Service Managementbusiness and will also boost productivity of IT service support professionals, reduce IT support costs and improve customer service. With support for iPhone, iPad, BlackBerry, Android and Windows Mobile devices, the solution helps enterprises and public sector organizations rapidly access IT service management functionality at any time and from anywhere. This acquisition substantively expands BMC’s IT service management leadership position with additional mobile expertise and innovative technology.

Moreover, we believe that the Aeroprise acquisition will provide customers with a highly efficient and sophisticated mobility solutions for the BMC Remedy IT Service Management Suite as they are constantly upgrading to meet the demand and expectation of an extremely mobile and global IT workforce.

BMC has been on an acquisition spree over the last couple of months. The company acquired a web application performance monitoring (APM) solutions provider, Coradiant Inc., but did not disclose the financial terms of the deal.

Couple of weeks back, the company announced that it has entered into an agreement with NEON Enterprise Software, the leading mainframe management software company, to purchase its Information Management System (IMS) database products division.

The acquisition is expected to further enhance BMC’s IMS database management portfolio, providing the most comprehensive suite of solutions, which will help the company address the current IT challenges with big data, database availability and data analysis, all within the organization’s IMS environment.

Acquisitions have expanded BMC Software’s product portfolio, leading to more comprehensive suite of solutions. Growth prospects in the SaaS and virtualization segments, favorable position in the government vertical and strong cash generation abilities are other positives for the company.

However, the company needs to seriously work on its cloud computing strategy, and we are also concerned about the intensifying competition from big players such as International Business Machines ( ( IBM - Analyst Report ) ), Hewlett-Packard Company ( ( HPQ - Analyst Report ) ), EMC Corp. ( ( EMC - Analyst Report ) ), Advent Software Inc ( ADVS - Snapshot Report ) and CA Inc. ( ( CA - Analyst Report ) ) which bundle hardware and software offerings. The company’s debt level also appears high.

BMC reported decent fourth quarter results. Moreover, the company provided a positive outlook for fiscal 2012. Acquisitions have expanded BMC’s product portfolio and facilitates the offering of more comprehensive solutions. Growth prospects in most of its business segments, position in the government vertical and strong cash generation abilities are other positives.

BMC has a Zacks #3 Rank, which translates into a short-term Hold rating.