28 jun: Når lav risiko giver højt afkast
17 jul: Test
02-07-2012 19:13:00

2nd UPDATE: Dell to Pay $2.36 Billion to Win Battle for Quest Software

--Deal would double size of Dell's fledgling software business

--PC maker beats out competing offers from private-equity group

--Acquired software company would be run by Dell executive Swainson

(Updates with additional details throughout on Dell's software unit, Quest CEO, valuation)

By Drew FitzGerald

Dell Inc. (DELL) agreed Monday to buy business-software maker Quest Software Inc. (QSFT) in a cash deal worth $2.36 billion, ending a bidding war with a private-equity group that included the company's chief executive.

Dell offered $28 a share for Quest, well above an initial bid of $23 a share from Insight Venture Partners, a venture-capital firm that has a longstanding relationship with Quest and Vinny Smith, its chairman and chief executive. Insight had partnered with private-equity firm Vector Capital to raise its bid to $25.75 a share, valuing the company at $2.17 billion.

Quest, which offers an array of software that makes it easier for information technology workers to perform routine tasks, last week said Dell's offer was superior without identifying the bidder. The buyout group considered Dell's latest bid too high, according to a person familiar with the situation.

The deal offers a 44% premium over Quest's share price in early March, before the company received its initial offer. It values Quest at about 16.9 times projected earnings.

Quest, is the latest in a string of deals for Dell, which has been looking to expand past its core business of selling PCs. The Round Rock, Texas, company earlier this year formed a unit dedicated to selling software and hired John Swainson, the former head of CA Inc. (CA), to run it.

Dell expects to leave the Quest products it is acquiring "relatively intact" as a standalone suite in the near term, Mr. Swainson told analysts on a conference call. He plans to lead the new businesses while Mr. Smith, who was part of the buyout group's competing offer to take the firm private, serves in an advisory role.

Quest generated $857.4 million of revenue last year, more than double the size of Dell's fledgling software business. Dell has said it plans to push software revenue past $2 billion by the fiscal year ended 2016.

Quest's sales force of about 1,500 also would provide Dell with more relationships with software customers and add to the PC maker's existing 20,000 sales workers. More than 100,000 business customers use Quest products for IT tasks like backing up data and loading programs on servers.

Dell is particularly interested in Quest's security products, Mr. Swainson said, as more companies demand ways to safeguard information being moved off-premises and into "the cloud," a buzzword for computer systems delivered through a network.

Topeka Capital Markets analyst Brian White said Dell is paying a reasonable sum for Quest based on the typical size of deal in the technology sector.

"Software assets are expensive," he said. "It's an asset that they can leverage over time."

Dell has announced several acquisitions this year, including security firm SonicWall Inc. and Wyse Technology Inc., which specializes in Web-based software.

Analysis firm Stifel Nicolaus said Dell could focus on integrating its existing software business with Quest's data-security and virtualized desktop products that could work with Wyse.

Quest, of Aliso Viejo, Calif., has faced mounting competition in its traditional specialty as vendors such as Oracle Corp. (ORCL) introduce their own database-management tools. Quest has responded by trying to diversify its business by acquiring smaller rivals that help technicians manage servers more easily and protect data.

Dell last week offered $27.50 a share, or about $2.32 billion for Quest. Insight had the opportunity to match or beat the increased offer but struggled to put together financing despite last-minute efforts by Mr. Smith, The Wall Street Journal reported, citing people familiar with the matter.

The fight over Quest echoes a similar battle Dell waged for high-end data-storage maker 3Par Inc. in 2010. Dell eventually bowed out after Hewlett-Packard Co. (HPQ) bid $1.6 billion for the company, which makes rapidly accessible storage drives that allow corporations to run more efficient databases.

Dell shares initially climbed premarket but were off 1.4% to $12.35 mid-Monday. Quest shares traded off a penny at $27.80.

Write to Drew FitzGerald at andrew.fitzgerald@dowjones.com

--Victoria Stilwell contributed to this article.

(END) Dow Jones Newswires

July 02, 2012 13:13 ET (17:13 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

Opret kommentar

Relateret debat

  • 1 uge
  • 1 måned
  • 1 År
22 jan
 
Jeg har idag meldt Roland333 til finanstilsynet for gentagende gange at have overtrådt Artikel 12 st..
67
18 jan
OMXC25
@ Poppelkongen: Jeg tror ski da, at du har misforstået brugen af filteret?! Når du nævner, at du er..
37
06:44
 
og du er sammen med lpe123 blevet anmeldt til børneværnet. 
26
17 jan
 
Hej alle,   Nu hvor jeg tager et sabat-år som investor i 2018, tænkte jeg, at jeg ville lave en upda..
26
19 jan
 
Jeg har på en fornemmelsen at i ikke bryder jer om mig? Ik sandt? Så har overvejet at stoppe på EI. ..
24
20 jan
 
Jeg stiller mig tvivlende,,,,,: At som dansk at betale til Prins Henrik & Co der skider DK en hatful..
19
08:29
 
@roland333,   2 ting!   1.) Du ved ikke engang hvordan man melder en person til finans-tilsynet.    ..
18
09:23
 
Her til moirgen har jeg fået tilbagemelding fra Finanstylsynet, om at de har oprettet en sag og unde..
17
19 jan
 
Måske du bare skulle revurdere din adfærd og generelle ageren?
16
20 jan
TEVA
Mit råd er at lade være med at lytte til andre. Beslut dig, hvad du synes Teva er værd. Hvis den nuv..
15

Aktier/tendens: Tryg kommer med lunkent regnskab i varmt marked

23-01-2018 08:44:18
Mens tirsdagens åbning tegner positiv, så kan Tryg halte lidt efter det generelle marked, efter at forsikringskoncernen har skudt regnskabssæsonen ind med tal for fjerde kvartal, der peger i flere retninger.Målt på det forsikringstekniske resultat slog Tryg akkurat analytikerforventningerne. Til gengæld haltede bundlinjen lidt efter forventningerne blandt andet som følge af en lidt skuffende inves..

Bavarian rider med på biotekbølge: Aktien stiger godt 5 pct.

22-01-2018 15:05:51
Bavarian Nordic er i forrygende form på børsen i København mandag eftermiddag, hvor aktien stiger med 5,3 pct. til 244,30 kr.Der er ikke umiddelbart selskabsspecifikke nyheder i markedet, der kan forklare fremgangen, men fokus er der i hvert fald til hele sektoren, efter at der er blevet annonceret to store handler i USA.Det kaster også udenlandsk interesse i retningen af Bavarian Nordic, hvor ude..

TDC danner ny digital forretningsenhed - NY

22-01-2018 13:11:01
TDC danner med virkning fra den 1. februar en ny forretningsenhed, Digital, med henblik på at styrke den digitale transformation i selskabet.Den nye enhed vil omfatte visse it- og udviklingsaktiviteter samt medarbejdere fra TDC Operations og vil samlet beskæftige over 500 ansatte inklusive tilknyttede medarbejdere fra Yousee og TDC Erhverv.- Digitals vigtigste formål er at samle de digitale ressou..

Mest læste nyheder

  • 24 timer
  • 48 timer
  • 1 uge
1
Bavarian rider med på biotekbølge: Aktien stiger godt 5 pct.
2
Genmab-konkurrent vil købe amerikansk biotekselskab for 55 milliarder
3
Aktier/middag: Bavarian Nordic topper i rødt C25
4
Amerikansk industrigigants aktie når laveste niveau siden 2011
5
Torm sætter tal på 2017 og udnytter optioner på to skibe - NY

Køb- og salgsanbefalinger

  • Trend
  • Pengemaskinen

Copyright Euroinvestor A/S 2018  Disclaimer Privatlivspolitik
Aktieinformation leveres af Interactive Data.
Data er forsinket 15-20 minutter iht. de enkelte børsers regler om videredistribution.
 
23. januar 2018 10:48:56
(UTC+01:00) Brussels, Copenhagen, Madrid, Paris
Version: LiveBranchBuild_20180122.2 - EUROWEB5 - 2018-01-23 10:48:56 - 2018-01-23 10:48:56 - 1 - Website: OKAY