After eight years, Serena Software has found a new home.
HGGC Capital, an investment firm, plans to announce on Monday that it has bought the enterprise software maker from its current owner, the private equity firm Silver Lake.
The financial terms of the transaction were not disclosed, but people briefed on the matter said HGGC paid about $450 million, in the first investment out of its second buyout fund. That price is substantially less than the $1.2 billion Silver Lake paid in 2006.
A spokesman for HGGC declined to comment on the purchase price
The transaction will leave HGGC responsible for continuing efforts to turn around Serena, which makes products to help companies manage their software services. The overall industry is growing, the company argues, estimating the market at about $8 billion.
But Serena has lost money in three of its six most recent fiscal quarters. For the three months that ended last Oct. 31, it lost $2.5 million on revenue of $46.1 million.
The software maker has already begun a number of initiatives under Greg Hughes, who was hired as chief executive last year. They include layoffs of nearly a third of the company’s employees and a cost-cutting program.
According to Mr. Hughes, that campaign has started to bear fruit, as revenue from software licensing stabilized after several months of declines. That business reported a 42 percent drop in the October quarter, to $7.8 million, however.
Silver Lake put the company up for sale several months ago. The firm has not extracted any cash from its investment in the form of dividends, according to regulatory filings.
But HGGC said it had faith that Mr. Hughes and his team would continue to make progress.
“We’re committed to helping guys like Greg create enormous amounts of opportunity,†Richard F. Lawson Jr., HGGC’s co-founder and chief executive, said by telephone.
The private equity firm, formerly known as Huntsman Gay Global Capital, has invested in several middle-market technology companies that it uses to make additional acquisitions. Its portfolio includes iQor, a customer service outsourcing provider, and MyWebGrocer, which provides Web and digital marketing offerings for brick-and-mortar grocers.
“They’re guys who really like to help people build their businesses through the firm’s extensive network,†Mr. Hughes said. “HGGC is great with working with companies our size.â€
As part of the sale, Serena’s founder, Douglas Troxel, will not only contribute his 30 percent stake in the company to HGGC’s deal, but will add to those holdings by investing additional money. He will remain on the board as well.
Also joining the board is Steve Young, the former professional football quarterback who co-founded HGGC.
HGGC was advised by Credit Suisse.
