Dell’s Acquisition Talks With Quest Software Break Off
Negotiations by Dell to acquire Quest Software, first reported last month but never confirmed by either company, have broken off, according to a Reuters report. No reason was given for the end of talks, which are being described as having been tenuous from the start.
Last month, chatty bankers had told Bloomberg News that Dell was nearing a deal to offer between $23 and $26 a share, which would have valued Quest at north of $2 billion. The talks were apparently the result of a “go shop” period provided for in an agreement by Quest to be taken private by Insight Venture Partners at $23 a share. Dell was said to be one of several companies interested in Quest. A report by J.P. Morgan values Quest at $28 a share based on its sales and cash flow alone.
Quest shares fell $1.26, or more than 5 percent, to $23.74. Dell shares fell 26 cents, or more than 2 percent, to $12.07.
Quest is a 25-year-old company that last year reported $857 million in sales and a $44 million net profit. Its specialty is creating management systems for enterprise software.
One product is called SharePlex, and it’s described as an Oracle replication product that promises to make a live copy of an Oracle database without slowing down its operation and availability. Another product for the Oracle environment is Toad, a tool that automates a lot of the maintenance tasks associated with running an Oracle database. Toad appears to be a flagship product as there are a few other versions of it for Sybase and SQL Server. Quest also builds tools to manage and maintain some Microsoft products like SharePoint and Exchange.