Dell acquires Quest Software for an estimated US$2.4bn

2 Jul 2012105 Views

IT giant Dell has signed an agreement to acquire Quest Software for US$2.4bn. The acquisition – which expands Dell’s software capabilities in systems management, security, data protection and workspace management – represents the foundation of a new US$1.2bn-a-year software business for the Texan firm.

Dell recently formed its new software group to build upon its existing software expertise, particularly in areas like enterprise solutions, and help differentiate Dell from its competitors.

The acquisition of Quest, particularly in areas like identity and access management, performance monitoring, Windows Server management and database management, will complement Dell’s scalable design approach as well as its recent acquisitions of companies like SonicWall, Secureworks, Clerity Solutions and Make Technologies.

Creating a US$1.2bn-a-year software division

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

“Quest’s suite of industry-leading software products, highly-talented team members and unique intellectual property will position us well in the largest and fastest-growing areas of the software industry. We intend to build upon the strong momentum Quest brings to Dell.”

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California-headquartered Quest last year reported revenues of US$857m.

It employs 1,500 software sales experts and 1,300 software developers.

“Clearly, Dell’s distribution, reach and brand are well-recognised in the industry,” said Vinny Smith, chairman and chief executive officer of Quest Software.

“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.”

“With this transaction, Quest’s products and employees become the foundation for Dell’s critical software business,” Smith said.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years

editorial@siliconrepublic.com