02 jul: MARKET COMMENT: Europe Stocks Rise as Investors Await ECB
02 jul: Dow Jones June Econ Sentiment Index Drops to 42.8, 6-Month Low
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
16:38
BIOPOR
Til dem der måtte være interesseret så har jeg skrevet lidt om Bioporto GF og min efterfølgende snak..
15
18 apr
VWS
Der har ikke været skrevet meget om hvad det nye MHI Vestas JV vil i Kina. Det har været nævnt kort ..
15
20 apr
GEN
Jeg er normalt ikke så let irritabel, men nu må det snart være nok. Igennem den sidste måned har j..
14
22 apr
GEN
Lad nu være med at træde hinanden over tæerne gang på gang i jagten på, hvem som har mest ret. Det e..
12
21 apr
EI
Jeg syntes, at mange af bemærkningerne ovenfor viser, at janteloven stadig er gældende. "Han skal ik..
9
21 apr
E:BARC
Normal 0 21 false false false NO-BOK X-NONE X-NONE ..
9
18 apr
VWS
Den overvejelse vil jeg i bedste fald kalde irrelevant. For det første er længder af kyststrækninger..
9
22 apr
GEN
Hvis GW kun skulle udtale sig om de aktier, han virkelig ejer ville der blive meget tomt på disse si..
8
21 apr
EI
Kanonkaj - Så skal du da også have et stort til lykke. Jeg kan vel så bare sige at "Det er helt kano..
8
21 apr
TOPO
Jeg er meget enig. Hvis man ser på det tilsendte materiale, så får vi som Topo-aktionærer +50% ift. ..
8

Migatronic er kommet planmæssigt igennem første kvartal

23-04-2014 16:37:29
Den nordjyske svejsemaskinfabrik Migatronic har i første kvartal oplevet "en positiv udvikling i såvel omsætning som indtjening i forhold til 2013".Det fremgår ..

Coloplast tager teten efter konkurrentnyt

23-04-2014 12:42:47
Et par lovende regnskaber fra et par af Coloplasts konkurrenter har medvirket til at sende medicoaktien til tops på det danske aktiemarked onsdag.Coloplast stig..

Aktier/middag: Investorerne slår koldt vand i blodet

23-04-2014 11:16:39
Efter en tirsdag hvor de danske og europæiske aktier blev sendt markant frem, er der mere ro på onsdag. Samlet bliver det til en lille nedgang for det toneangiv..

Mest læste nyheder

  • 24 timer
  • 48 timer
  • 1 uge
1
Aktier/tendens: Stigningerne vil løje af
2
Verdens største biotekselskab skuffer
3
Aktier/middag: Investorerne slår koldt vand i blodet
4
Største stigning i 14 år: Briter belønnes for tøj-entré i USA
5
Aktier/åbning: Markedet træder vande
Euroinvestor i andre lande: Euroinvestor.com | Euroinvestor.se | Euroinvestor.no | Euroinvestor.fr | Forexinvestor.com| Wisselkoersen.nl | Valuta.se | Valutaveksel.no | Divisas.es | Valute.it
Copyright Euroinvestor A/S 2014  Disclaimer Privatlivspolitik
Aktieinformation leveres af Interactive Data.
Data er forsinket 15-20 minutter iht. de enkelte børsers regler om videredistribution.
 
23. april 2014 20:05:54
(UTC+01:00) Brussels, Copenhagen, Madrid, Paris
Version: LiveBranchBuild_20140324.1 - EUROWEB5 - 2014-04-23 20:05:54 - 2014-04-23 20:05:54 - 1 - Website: OKAY

Når du besøger Euroinvestor.dk accepterer du, at der anvendes cookies, som vi og vores samarbejdspartnere benytter til funktionalitet, statistik og markedsføring. Læs mere om cookies på Euroinvestor.dk her

x