Infrastructure management software vendor Peregrine Systems has filed for Chapter 11 bankruptcy protection in the US and is to sell its Remedy unit to enterprise management software vendor BMC for $350m.
Peregrine said financial and legal issues raised by its inability to file audited financial reports for the 2000, 2001 and 2002 fiscal years had led to the move. Peregrine bought the Remedy service management software unit for $1.2bn in August 2001.
Gary Greenfield, chief executive of Peregrine, said: "In June we made the decision to operate Remedy as a separate business unit. The sale of Remedy to BMC provides security for employees and customers of both Peregrine and Remedy. Now Peregrine customers know that their investment in our software is protected."
Bob Beauchamp, chief executive of BMC, said: "We have long recognised the strength and market leadership of Remedy, even under difficult circumstances, and the value that our complementary solutions bring to customers."
Daily operations at Peregrine will continue as usual during bankruptcy protection, said Greenfield.
"With up to $110m in debtor-in-possession financing and the protections provided under the bankruptcy code for post-petition purchases, we are confident our suppliers will continue to support us while we complete our restructuring," he said.
The bankruptcy protection filing does not cover Peregrine's international subsidiaries or Peregrine Solutions. "We have the largest installed base in the IT infrastructure management space in the world and we fully intend to leverage that leadership position," Greenfield said.
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