Serena Software sold to private equity firm HGGC

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Serena Software founder Doug Troxel is teaming up with private equity firm HGGC to purchase the application development software vendor from Silver Lake Partners. Terms of the deal, which was announced Monday, were not disclosed.

The company last changed hands in 2006, when Silver Lake, another private equity firm, bought it for US$1.2 billion.

Serena makes tools for application development, delivery and release management. Its current leadership team will remain with the company after the deal closes, with HGGC CEO Rich Lawson becoming chairman of the vendor’s board.

The company is a sound investment because of its “significant revenue streams and exceptional customers,” Lawson said in a prepared statement.

Those sentiments notwithstanding, Silver Lake is reportedly selling to HGGC for only $450 million, according to a report Monday in the New York Times.

Spokesmen for Serena and HGGC declined to comment on the financial details of the transaction.

News that a deal was in the works first emerged last month.

Serena, which competes with the likes of IBM Rational and CollabNet, has struggled financially in recent years.

It reported $135 million in revenue for the nine months ended Oct. 31, with a net loss of $3.7 million.

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