Software firm Micro Focus (LSE: MCRO.L) has agreed to buy Serena Software Inc. from HGGC for $540 million in enterprise value. The pending exit will be the first out of HGGC’s second fund that closed in March 2015 with about $1.3 billion in capital.

Serena Software, based in San Mateo, California, provides software that can track and make changes to other application systems during the development process. The target helps more than one million users in about 2,500 business organizations. Under HGGC’s ownership, Serena reduced its debt by about $100 million, reached double digit Ebitda growth and began generating about $30 million in annual software license revenue. HGGC partnered with founder Doug Troxel to acquire Serena in 2014. The PE firm won Mergers & Acquisitions M&A Mid-Market Private Equity Frim of the Year for 2014 after making nine acquisitions and one exit during a time of transition.

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