Dell Makes it Official: Quest Software Acquired
Dell (NASDAQ:DELL) will acquire Quest Software (NASDAQ:QSFT) for $28 per share or $2.4 billion, the companies announced this morning. Dell said Quest Software would be a strong strategic fit with its recently formed software group and would extend Dell’s existing capabilities in systems management, security, data protection and workspace management.
Quest software counts both enterprises and managed service providers among its customers, and is well known for its Windows migration tools. As noted by MSPmentor here, the acquisition puts Dell in competition with most of the vendors in the managed service arena including Level Platforms, LabTech, N-able, Kaseya, ConnectWise, Autotask, and others.
Quest is only Dell’s most recent acquisition of a company that serves the managed service space. Others were Silverback, SonicWall, Everdream and those that touch the space were Wyse, KACE, ACS, and Perot Systems.
“Clearly, Dell’s distribution, reach and brand are well recognized in the industry. Combine that with Quest’s software expertise and award-winning systems management products and you have a very powerful combination for our customers and partners,” said Vinny Smith, chairman and chief executive officer of Quest Software, in a prepared statement. “With this transaction, Quest’s products and employees become the foundation for Dell’s critical software business.”
Dell does not mention PacketTrap RMM or PacketTrap PSA in its release announcing the Quest acquisition, nor did it manage those solutions during a morning call with financial analysts. Here’s a look at what Dell ownership may mean to those platforms.
Quest generated $857 million in global revenue based on its fiscal year 2011 results at gross margins of 86 percent and operating margins of 11 percent. Quest’s 1,500 software sales experts and 1,300 software developers will join Dell’s existing team. Dell says the addition of Quest will build its software business to $1.2 billion in annual revenue. The deal is expected to close in the third quarter.