Hardware giant Dell has upped its bid to acquire enterprise management software vendor Quest to $2.32 billion, sources claim.
Two bidders have recently been competing to buy Quest: a buyout group led by private investment firm Insight Venture Partners, and an undisclosed bidder.
Yesterday, sources claimed the mystery bidder was actually Dell, the No. 2 US PC maker. Quest disclosed on Monday that it had received an improved bid of $27.50 per share in cash from the mystery bidder, but did not reveal the bidder's identity.
Reuters reported on May 25 that Dell planned to offer $23 to $26 per share to buy Quest. The source who spoke to Reuters on Monday requested anonymity because the takeover talks are private.
Dell declined to comment on Monday, and a Quest representative was not immediately available for comment.
Major tech companies have often preferred to keep their identities private when bidding wars heat up. This helps prevent the bidder from feeling compelled to overpay and also spares it the public embarrassment of an unsuccessful takeover attempt.
One of the last public battles occurred when Dell fiercely competed against HP for data storage company 3PAR in 2010.
Dell spurred that fight with an $18-a-share bid, but HP ended up buying the company for $33 a share.
Dell's latest offer for Quest beats an earlier bid of nearly $2.17 billion or $25.75 a share from the Insight Venture Partners buyout group which includes Vector Capital.
Shares of Quest were up 5.3 percent at $27.60 on Monday afternoon on the Nasdaq, suggesting that investors expect a counter-offer to emerge. Dell shares were down 1.9 percent at $11.97.
Jefferies analyst Aaron Schwartz said the flexibility of the buyout group is limited at and beyond the $27.50 to $28.00 level. An amended bid would require Insight and Vector to increase their equity commitments and change the debt financing structure.
JPMorgan Chase & Co, RBC Capital Markets and Barclays are currently providing approximately $1.2 billion for the joint bid from Insight and Vector.
-
Scale of Dell job cuts laid bare as firm sheds 10% of staff in a yearNews Dell Technologies’ workforce has reduced significantly in recent years, figures show, with headcount at the tech giant dropping by 10% in 2025 alone.
-
Dell Technologies just revamped its Partner Program for 2025 – here's what to expectNews Dell Technologies has unveiled its revamped Partner Program for 2025, offering a range of new incentives for partners.
-
'Nothing is faster than the speed of human interaction': Dell orders staff back into the office as the company shakes up hybrid working practicesNews Dell Technologies has ordered staff to return to the office five days a week, according to reports, with some exceptions allowed for staff located too far from physical office sites.
-
Meta layoffs hit staff at WhatsApp, Instagram, and Reality Labs divisionsNews The 'year of efficiency' for Mark Zuckerberg continues as Meta layoffs affect staff in key business units
-
Business execs just said the quiet part out loud on RTO mandates — A quarter admit forcing staff back into the office was meant to make them quitNews Companies know staff don't want to go back to the office, and that may be part of their plan with RTO mandates
-
Microsoft tells staff it won’t follow Amazon or Dell on enforcing a return to the office – but there’s a catchNews While other big tech companies are forcing reluctant workforces back into the office, Microsoft isn’t following suit
-
Amazon workers aren’t happy with the company’s controversial RTO scheme – and they’re making their voices heardNews An internal staff survey at Amazon shows many workers are unhappy about the prospect of a full return to the office
-
Predicts 2024: Sustainability reshapes IT sourcing and procurementwhitepaper Take the following actions to realize environmental sustainability
