Dell Inc, the world's third-largest PC maker, is in talks to buy network security firm Quest Software Inc, Bloomberg yesterday reported, citing sources.
In March, Quest had agreed to be bought out by New York-based private equity and venture capital firm Insight Venture Partners for $23 per share or $2 billion, (See: Insight Venture to acquire Quest Software for $2 bn), when Dell was among the bidders for the Aliso Viejo, California-based company.
The deal included a 60-day "go-shop" provision for Quest to solicit alternative proposals and a break-up fee of $4.2 million during the 60 days and $6.3 million after the go-shop period ended.
In early May, Quest announced that it had received multiple alternative proposals during the go-shop period. "The alternative proposals are reasonably expected to lead to a superior proposal," the company said in a statement. (See: Quest Software receives multiple proposals from suitors)
Founded in 1987, Quest Software provides innovative IT management solutions like database management, data protection, identity and access management, monitoring, user workspace management to Windows management.
The company, which had a market value of $2.12 billion at yesterday's close, claims to have more than 100,000 customers worldwide, of which, 87 per cent are from among the Fortune 500.