Report: Dell is Mystery $2.15 Billion Bidder for Quest Software

The “quest” to discover the mystery bidder for Quest Software (News - Alert) may be over. Last Thursday, the firm confirmed it had been the subject of a multi-billion dollar offer. According to reports, the identity of the would-be buyer is hardware giant Dell (News - Alert).

Reuters pinpointed Dell as the mystery bidder for enterprise management software provider, Quest. Talks between the companies about a potential takeover had previously come to an impasse.

The offer equates to $25.50 per share, well above the $23 per share offer that private equity firm Insight Venture Partners submitted. That offer was accepted by Quest in March this year. However, Insight must increase its offer. On the other hand, Quest may choose to pay a break-up fee of either $4.2 million or $6.3 million to accept the higher offer, according to Sys-Con.

Quest’s share price was bumped up around 10 percent by Wall Street traders, who believe Quest may eventually be sold for over $26 per share. Financial service firm JP Morgan (News - Alert), meanwhile, considers Quest to be worth around $2.36 billion, or $28 per share. The Insight offer valued Quest at around $2 billion.

During negotiations with Insight, Quest struck a 60-day “go-show” agreement which meant it could seek a better price from other suitors. The company reportedly received several offers.

According to Quest, which counts Dell as a partner, the $2.15 billion offer is ready to be confirmed. If shareholders who voted in favor of the Insight deal turn down the new bid, the mystery bidder will have the opportunity to buy new shares that equate to 19.9 percent of the company. Alternatively, a break-up fee may be paid.

Quest’s provides software solutions such as databases, Windows Server management products, and back up offerings to 100,000 customers worldwide.

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