A number of parties have submitted bids to acquire Quest Software, which announced in March that it was going private via a US$2 billion stock buyback in partnership with equity firm Insight Venture Partners.

Quest, which is known for its array of IT management and infrastructure software, made the disclosure about the bids on Wednesday. It did not name the suitors.

The announcement was not unexpected, as Quest had said in March that it would also seek a buyer for the company, in hopes of getting a better outcome for shareholders.

A special committee formed by Quest has determined that a number of the offers are “reasonably expected” to result in a superior deal, but nothing has been confirmed, according to a statement.

Likely bidders for Quest could include Dell, which recently formed a new software division and has since made a series of infrastructure-related acquisitions. It’s also conceivable that one of the “Big Four” systems management vendors — BMC, IBM, CA Technologies and Hewlett-Packard — could be interested in the vendor.

Quest’s stock was up about 9 percent to $24.88 on the news in early trading Wednesday.

Source:http://www.computerworld.com/s/article/9227048/Potential_bidding_war_emerges_for_Quest_Software

The Shareholders Foundation, Inc. announces that an investor filed a lawsuit in State Court for current stockholders of Quest Software, Inc. (QSFT) in effort to stop the proposed takeover of Quest Software, Inc. by affiliates of Insight Venture Partners for $23.00 per share.

If you purchased shares of Quest Software, Inc. (QSFT) prior to March 9, 2012 and currently hold those QSFT stocks, you have certain options and you should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.

On Friday, March 9, 2012, Quest Software, Inc. announced that it had entered into agreements with affiliates of Insight Venture Partners, under which stockholders not affiliated with the buyout group would receive $23.00 per share in cash.

However, the plaintiff says that the $23 offer is unfair to stockholders and undervalues Quest Software. Indeed, recent stock prices leave certain QSFT stockholders with no premium at all, but rather ask them to hand over their shares at a discount.

In fact, QSFT shares jumped from $19.40 on Thursday to $24.13 during Friday, thus above the offer. Furthermore, QSFT shares traded in April 2011 as high as $25.76 and in December 2010 even as high as $28.10 per share, also above the current offer. In addition, an analyst has set the target price for QSFT shares at $29 per share.

Further the plaintiff claims that the process is also unfair to QSFT stockholders. Indeed, Quest Software’s Chairman and CEO, who approximately holds 34% of current shares outstanding, already agreed to support the transaction.

Those who currently are investors in Quest Software, Inc. (QSFT) shares and purchased their shares before the announcement have certain options and should contact the Shareholders Foundation.

The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

Source:http://www.marketwatch.com/story/quest-software-inc-investor-lawsuit-against-takeover-announced-by-shareholders-foundation-2012-03-14?reflink=MW_news_stmp

Aliso Viejo-based company will be acquired for $2bn by the private and venture capital firm

Technology firm Quest Software has agreed to be acquired by Insight Ventures Partners for $2bn.

Quest Software, which employs a workforce of 3,850, sells enterprise software, information technology management solutions and related services, according to Los Angeles Times.

Included among Aliso Viejo-based company’s clients are Papa John’s, Amway, the University of Massachusetts Medical School, among others.

Insight Venture Partners is a private equity and venture capital firm focused on software, internet and data-services industries.

Quest chairman and chief executive Vinny Smith would continue to lead the company and the senior mangement team will also remain.

Smith said as a private company, Quest will have increased flexibility to drive innovation across our product lines and execute its long-term strategy.

“This move to a private company also will create exciting career opportunities for our employees, while retaining our commitment to continuing to provide excellent service to our customers,” said Smith.

The agreement also includes a 60-day go-shop period during which a special committee at Quest ‘will actively’ solicit and evaluate alternative buyout proposals.

Source:http://itservices.cbronline.com/news/insight-ventures-partners-to-buy-quest-software-120312