Dell makes a move to acquire Quest for $2.4 billion
July 2, 2012 01:33 PM
With its planned acquisition of Quest Software, Dell Inc. continues to speed up its transformation from a personal computer gear maker to both manufacturer and services provider.
Dell, No. 5 in the Internet Retailer Top 500 Guide will acquire Qwest, a developer of security and performance monitoring software, in a deal valued at about $2.4 billion. Dell will pay about $28 per share for all outstanding shares of Quest stock and expects the deal to close in the third quarter.
Quest generated $857 million in global revenue in fiscal 2011. The addition of Quest, including its 1,500 software sales personnel and 1,300 software developers, will help Dell build more market share and software expertise in the systems management, security and cloud integration business, and grow its $1.2 billion software business, the company says.
“The addition of Quest will enable Dell to deliver more competitive server, storage, networking and end-user computing solutions and services to customers,” says Dell software group president John Swainson. “Quest’s suite of software products and unique intellectual property will position us well in the largest and fastest-growing areas of the software industry.”
Quest, established in 1987, is headquartered in Aliso Viejo, CA, and serves more than 100,000 customers worldwide. The company has approximately 3,850 employees and operates 60 offices in 23 countries. Quest’s main software products target systems management, security, data protection and workspace management.
Quest is the latest in a series of acquisitions by Dell. In May, Dell acquired Wyse Technology, a developer of cloud computing software, andSonicWall Inc., a developer of network security, secure remote access, e-mail security, and data backup and recovery software. Dell did not say how much it paid for those two companies.