Dell Said Close to Acquiring Quest for Computer Management

Friday, 25 May 2012 05:33 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

Dell Inc. is in advanced discussions to acquire Quest Software Inc., a maker of tools that help companies manage their computer systems, according to a person with knowledge of the matter.

An agreement could be announced as soon as this weekend, said the unnamed source.

Quest, which agreed in March to be bought by private-equity firm Insight Venture Partners for about $2 billion, has said it received other offers. The company makes software to help businesses manage databases and servers, as well as back up information and recover lost data. Dell, the third-largest maker of personal computers, is using deals to help it cater to corporate customers and lessen its reliance on PCs.

Quest, which has a market value of about $2.12 billion, also helps customers monitor the performance of applications that run businesses. The stock lost 0.1 percent to $25.15 at the close in New York. Before today, it had surged 35 percent this year amid speculation that another buyer would top Insight’s $23-a-share bid.

Dell, based in Round Rock, Texas, has been making purchases - including five announced this year - to add software, computer storage and networking gear to its lineup of PCs, which account for 52 percent of its sales.

Dell on May 22 reported fiscal first-quarter sales fell four percent and forecast second-quarter revenue for the period ending in July that missed analysts’ estimates. The shares had their worst performance in more than a decade the following day.

Tracy Benelli, a spokeswoman for Quest, didn’t return messages seeking comment. David Frink, a spokesman for Dell, declined to comment, as did David Satterfield, a spokesman for Insight Venture Partners.

Quest said on March 9 that it agreed to be taken private by Insight. Two months later, the Aliso Viejo, California-based company said it received several other offers during a so-called “go-shop” period that are “reasonably expected to lead to a superior proposal.”

JPMorgan Chase & Co. has said Quest is worth about $28 a share, based on the software provider’s sales and cash flow, and could attract bids from International Business Machines Corp., Dell or private-equity firms.

Quest's May report sales rose 11 percent in the second quarter, according to analysts’ estimates compiled by Bloomberg. The company’s revenue rose 13 percent in the first quarter.

Dell shares have declined 19 percent in the past year as an effort by Chief Executive Officer Michael Dell to annex new parts of the computer market has met with uneven results. Sales in the current fiscal year may drop 3 percent to $60.1 billion, according to estimates compiled by Bloomberg.

Dell had $13.7 billion in cash and short-term investments on its balance sheet at the end of the fiscal first quarter.

Quest Software is being advised by New York-based Morgan Stanley.

© Copyright 2014 Bloomberg News. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

NASA Spacecraft Approaches Mars to Seek Answers to Lost Water

Saturday, 20 Sep 2014 13:53 PM

A NASA spacecraft designed to investigate how Mars lost its water is expected to put itself into orbit around the Red Pl . . .

Astronauts Getting 3-D Printer at Space Station

Saturday, 20 Sep 2014 07:38 AM

The 3-D printing boom is about to invade space.NASA is sending a 3-D printer to the International Space Station in hopes . . .

New Smartphone App Gives Sight to Blind

Saturday, 20 Sep 2014 07:29 AM

Jonathan Mosen, who has been blind since birth, spent his evening snapping photos of packages in the mail, his son's sch . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved