By Greg Roumeliotis and Soyoung Kim
NEW YORK, Sept 6 Buyout firm Silver Lake is
working on a sale of information technology management company
Serena Software Inc, which it has tried to sell at least once
before since it acquired the company for $1.2 billion in 2006,
three people familiar with the matter said.
Silver Lake has asked Barclays Plc to run a new
sale process in the hope that it will receive bids that are
higher than those made during the last sale effort a couple of
years ago, the people said this week.
Silver Lake committed $335.5 million in equity in the $1.2
billion deal to take Serena private in 2006, according to
regulatory filings. The private equity firm may still struggle
to sell the company for more than the value of the deal in 2006,
the people said.
The unnamed sources asked not to be identified because the
sale process is confidential. A Silver Lake spokesman had no
immediate comment, while Serena and Barclays representatives did
not immediately respond to requests for comment.
San Mateo, California-based Serena provides software to
companies looking to streamline their management processes. Some
of its products compete with CA Inc, International
Business Machines Corp and Compuware Corp.
Serena launched two restructuring plans this year to address
falling profits and boost operating margins. The company reduced
its workforce by 8 percent in the first quarter and 24 percent
in the second quarter, for a loss of 175 employees in total. The
company expects to cut operating expenses for its fiscal year
2014 by 17 percent to 19 percent compared to a year ago.
In the 12 months ending Jan. 31, 2013, Serena reported
adjusted earnings before interest, tax, depreciation and
amortization of $74.4 million, down from $85.8 million over the
same period a year ago. The company had total outstanding debt
of $410 million as of the end of July.
Silver Lake currently owns about two-thirds of Serena, with
the remainder owned primarily by Douglas Troxel, who founded
Serena in 1980 and who was its chief executive officer until
1997. He still sits on Serena's board of directors.