Quest Software to be Acquired in $2 Billion Deal

Quest Software Inc (NASDAQ:QSFT) announced Friday that it had agreed to be acquired by private equity group Insight Venture Partners in a deal worth $2 billion.

The $23 per share offer was a 19 percent premium to Thursday’s closing price of $19.35. The deal includes a 60-day “go shop” period during which Quest is allowed to seek other offers. If Quest chooses to accept another offer during the 60-day period, they will have to pay a $4.2 million fee. If they choose to call the deal off after the “go shop” period, they face a penalty of $6.3 million.

The Aliso Vieja, California-based Quest makes business software and has responded to increased competition by acquiring smaller competitors. The acquisition costs have led to a decrease in earnings for Quest despite rising revenues for the company.

Quest Chief Executive Vinny Smith and the senior management team will stay on board after the acquisition.

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