Dell Inc is in conversation with Quest Software Inc to buy it. Quest is the IT management tools company, or you can say it is the network security software maker.
As per the reports of Bloomberg, Insight Venture Partners had earlier accepted to obtain Quest, but it didn’t work out.
Early morning Friday May 25, Nasdaq showed the shares of Quest rising up by 5% at $26.45.
Soon after the offer of Insight Venture, the company shares with current market estimation of $2.12 billion, achieved more than one-third of their value.
Many proposals poured in the path of Quest during last month ‘go-shop’ period, which was followed by the offers flowing from private investment firms.
Many analysts have recommended Dell as one of the probable bidders for Quest software. The backup and security software offerings of Quest would be very much in accordance with the Dell’s product portfolio.
As the sales of the PC has been reduced, Dell is in process of diverting its revenue, ceasing the low-margin sales to consumers, and heading towards better edgy positions, for example providing effective technology requirements of marginal businesses in public sectors and healthcare enterprises.
Few other capable bidders mentioned by the analysts are BMC Software Inc (BMC.O), CA Inc (CA.O), Microsoft Corp (MSFT.O) and Oracle Corp (ORCL.O).
Morgan Stanley has been held as the chief advisor of Quest.
Doug Garn gave way to Chief Executive Vinny Smith because of his ill-health. Smith has been leading the company since February, whose significant products involve the software that follows the data flow via networks.
As per a Dell spokesman, the company does not need to speak up on unnecessary rumors or assumptions.
The shares of the Dell on the Nasdaq were only up by 1 percent at $12.58.
No comments:
Post a Comment