US-based enterprise systems management software maker Quest Software Inc, which had agreed to be acquired by private equity firm Insight Venture Partners, for about $2 billion in cash, has received multiple alternative proposals during its ‘go-shop’ period.
“The alternative proposals are reasonably expected to lead to a superior proposal,” said Quest Software in a statement.
The Aliso Viejo, California-based software maker did not name the alternative bidders, or how much they are offering to pay, but said that the alternative offers are subject do due diligence and other requirements.
In March, New York-based Insight, which has raised over $5 billion to invest in the software and internet verticals, agreed to buy Quest Software for $23 a share. (See: Insight Venture to acquire Quest Software for $2 bn)
The deal included a 60-day “go-shop” provision for Quest to solicit alternative proposals and a break-up fee of $4.2 million during the 60 days and $6.3 million after the go-shop period ends.
Founded in 1987, Quest Software provides innovative IT management solutions like database management, data protection, identity and access management, monitoring, user workspace management to Windows management.
The company claims to have more than 100,000 customers worldwide, of which, 87 per cent are from the Fortune 500.
With more e than 60 offices in 23 countries, Quest Software generated revenues of $857 million in 2011 and invests 18.9 per cent of that on R&D.