Dell to acquire Quest Software for $2.4 bn

Dell Inc on Monday said it will acquire Quest Software in an all-cash $2.4 billion deal, a move that would bolster the computer maker's software capabilities.

Both Dell and Quest, a leading enterprise management software solutions provider, have good presence in India.

The two companies have entered into an agreement for the deal, approved by their respective boards of directors, Dell said in a statement on Monday.

"Dell will pay $28 per share in cash for each share of Quest for an aggregate purchase price of approximately $2.4 billion, net of Quest's cash and debt," it said.

The computer maker struck the deal surpassing competitive bidding from private equity player, Insight Venture Partners.

Subject to shareholders' and regulatory approvals, the deal is expected to be completed in the third quarter of Dell's fiscal year.

"The addition of Quest will enable Dell to deliver more competitive server, storage, networking and end user computing solutions and services to customers," Dell Software Group President John Swainson said.

Quest has about 3,850 employees and operates 60 offices in 23 countries.

"The acquisition provides critical components to expand Dell's software capabilities in systems management, security, data protection and workspace management," the statement noted.

Further, Quest's software portfolio is "highly complementary" to Dell's scalable design approach to develop solutions that scale with customer needs, it added.

Recently, Dell formed its software group, aimed at boosting the company's enterprise solutions capability, among others.