BMC Agrees To Buy Magic Solutions

BMC Software Inc., a maker of systems management tools, said Monday that it has agreed to acquire Magic Solutions from Network Associates Inc. for $47 million in cash.

The Houston software maker said Magic's product portfolio would widen its reach among small and midsize companies. Magic has more than 4,000 customers using its service desk applications.

The acquisition, expected to close within 60 days, will add about 200 Magic employees to BMC. Magic's assets will become a part of BMC's Remedy business unit.

"In addition to allowing BMC Software to expand its leadership position in the IT Service Management market, acquiring Magic Solutions' assets is a financially attractive transaction that is consistent with our disciplined approach to acquisitions," Jeff Hawn, senior vice president of operations for BMC Software, said in a statement. "Magic Solutions is a highly profitable business with positive cash flow. This transaction is expected to be accretive to BMC Software earnings early in the next fiscal year."

Plano, Texas-based, Magic is a division of security software company Network Associates, headquartered in Santa Clara, Calif.