Dell outbids Insight Venture Partners to acquire Quest Software for $2.4 bn

Global computer technology giant Dell Inc said yesterday that it has agreed to buy Quest Software Inc, an IT management software provider for approximately $2.4 billion, outbidding private equity firm Insight Venture Partners' $2-billion offer.

A possible deal between Dell, the world's third-largest PC maker, and Quest Software was reported few weeks ago. (See: Dell in talks to buy network security firm Quest Software: report) 

Last week, Quest, which had agreed to be acquired by private equity firm Insight Venture Partners for around $2 billion in March, said that it has received a superior buyout offer from a mysterious bidder. (See: Quest Software receives new $2.32 billion offer from mystery bidder) 

Dell's offer is $28 per share of Quest, well above Insight's initial offer of $23 a share. The price is 17 per cent above the closing price before Quest announced the mysterious offer a fortnight ago and 43 per cent higher than the price when Quest revealed the bid by Insight Venture in March.

Aliso Viejo, California-based Quest, established in 1987 is a large software company providing innovative IT management solutions including database management, data protection, identity and access management, and monitoring user workspace management.

The award-winning software developer has 60 offices spread over 23 countries across the globe, and has over 100,000 worldwide customers. Its 2011 revenue was $857 million in 2011.