When I bought Quest Software (QSFT) in mid-2010, it was with the idea that the company was a solid acquisition play but had enough going on in its business that it would be a worthwhile investment on a stand-alone basis. With Friday's announcement that the company has accepted a buyout offer from Insight Venture Partners, it looks like this story has found its closure.
The Deal
Quest announced that it reached an agreement with Insight Venture Partners whereby this private equity firm will take the company private in a $2 billion deal. That price translates into $23 per share for Quest shareholders, or about a 19% premium to Thursday's (March 8) close.
This deal includes a pretty generous go-shop window (60 days) for Quest, where management can pursue and entertain competing offerings. Should a better deal emerge, Quest would owe only a small $4 million break-up fee.
Read more here:
Approaching The End Of The Quest
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