Dell to buy Quest Software for $2.4b to boost software biz

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Dell announced Monday it will acquire Quest Software, a database and IT management software vendor, for $2.4 billion.

Quest sells software that allows enterprises to administer databases and servers, back up and recover information and manage identities across multiple applications.

Under the terms of the deal, expected to close sometime in the third quarter of this year, Dell will pay $28 a share for Quest. The acquisition has been approved by both companies' board of directors, but is subject to regulatory approvals and a Quest shareholder vote.

“The addition of Quest will enable Dell to deliver more competitive server, storage, networking and end-user computing solutions and services to customers,” John Swainson, president of the Dell Software Group, said in a press release.

Quest Software sells a broad range of enterprise applications, which include database and server management, virtualization services, and identity management software. As part of Dell's recently formed Software Group, Quest's technology will provide a good base of software on which to expand, in the areas of systems management, security, data protection and workspace management, Swainson said on a conference call with reporters on Monday.

The Dell-Quest combination willaccelerate Dell's software efforts to develop products that are greater than "the sum of its parts," Swainson said, adding that these offerings would allow enterprises to manage increasingly complex IT environments.

For many of Dell's customers, finding dependable and comprehensive security is a primary concern, especially as they consolidate applications on cloud platforms, according to Swainson. Dell already has a strong security focus with SonicWALL and SecureWorks, and Quest's security and data protection technologies would just enhance the existing assets, Swainson said. The Quest One Identity and Access Management products allow enterprises to protect multiple cloud applications with a single sign-on platform.

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