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Insight Venture to acquire Quest Software for $2 bn

10 Mar 2012

1

Insight Venture Partners, a private equity firm focused on the global software industry, yesterday agreed to acquire enterprise systems management software maker Quest Software Inc, for about $2 billion in cash.

New York-based Insight, which has raised over $5 billion to invest in the software and internet verticals, will pay $23 a share, a  premium of 19 per cent to Quest's closing price of $19.40 yesterday.

The deal includes 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 ends.

Founded in 1987 and based in Aliso Viejo, California, 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 claims to have more than 100,000 customers worldwide, of which, 87 per cent are from the Fortune 500.

With more e than 60 offices in 23 countries, Quest Software generated revenues of $857 million in 2011 and invests 18.9 per cent of that on R&D.

Upon closing, Quest Software expects to become a privately held company and will continue to be led by its chairman and CEO Vinny Smith and the existing senior management team. The company plans to maintain its headquarters in California.

''As a private company, we will have increased flexibility to drive innovation across our product lines and execute our long-term strategy. We expect this strategic partnership with Insight, with whom we have worked for many years, will ensure the company has a secure foundation and a commitment to investment in the Company's long-term growth,'' said Vinny Smith, chairman and CEO of Quest Software.

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