Dell buys Quest Software for £1.5 Billion
Another one to add to the list of recent purchases.
Sources: Dell / The Register
After a minor bidding war with Insight Venture Partners, Michael Dell has prevailed with a bag of cash stuffed with $2.4bn (£1.5bn) to take over Quest Software - a peddler of a hodge-podge of systems, database, performance and access management tools as well as data archiving software.
Dell has not historically broken out its fledgling but growing software business from its peripherals arm, but said today that after acquiring Quest the company's software unit would have generated $1.2bn in revenue if you combine its own software sales with those of Quest for last year.
The important thing for Dell, and why it is ready to pay $28 a share or a 44.3 per cent premium for Quest based on its closing price on 8 March, is to build a growing and profitable software business.