By Victoria Stilwell
Quest Software Inc. (QSFT) said the undisclosed third party
bidding to take over the business-software maker has boosted its
offer to $2.32 billion, a bid it determined to be superior to the
raised $2.17 billion buyout deal from Insight Venture Partners.
The bidder hasn't been named but is thought to be computer maker
Dell Inc. (DELL).
Quest shares climbed 5.6% to $27.68 in premarket trading,
topping the new offer of $27.50 a share. The bid marks an increase
of $2 a share over the original third-party bid. Insight,
meanwhile, originally offered $23 a share in March and later
boosted that bid to $25.75, adding fellow private-equity firm
Vector Capital to its effort.
Insight will have the opportunity to match or beat the increased
offer. Quest said if the new offer remains superior, it would
terminate its existing merger agreement with Insight.
Quest, of Aliso Viejo, Calif., has faced mounting competition in
its traditional specialty--software for managing databases--as
vendors such as Oracle Corp. (ORCL) have introduced their own
management tools. Quest Software has responded by trying to
diversify its business by acquiring smaller rivals.
The fight over Quest echoes a similar battle Dell waged for
high-end data-storage maker 3Par Inc. in 2010. Dell eventually
bowed out after Hewlett-Packard Co. (HPQ) bid $1.6 billion for the
company, which makes rapidly accessible storage drives that allow
corporations to run more efficient databases.
Write to Victoria Stilwell at Victoria.Stilwell@dowjones.com