Stock Market Watch

Quest Software (QSFT) Surges on Going Private

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Shares of Quest Software, Inc. (NASDAQ:QSFT) are surging over 21% in morning trade after the company entered into a definitive agreement to be taken private for approximately $2.0 billion. Under the terms of the agreement with Insight Venture Partners Quest Software stockholders would receive $23.00 per share in cash, valuing the Company at approximately $2.0 billion.

The proposed merger with an affiliate of Insight was negotiated and unanimously recommended to the Board by a Special Committee of the Company’s Board of Directors, which comprised three independent and disinterested directors.

H. John Dirks, Chairman of the Special Committee, stated, “We are pleased to have successfully negotiated a transaction that includes an attractive upfront premium for Quest’s (QSFT) shareholders, an all-cash deal that would eliminate ongoing execution risk following a transaction, and that compares favorably with Quest’s standalone alternatives.”


“In addition, the transaction agreements include a robust ‘go-shop’ provision and a low termination fee structure. The Special Committee pursued this option after a review with their advisors of the Company’s strategic alternatives, and the Special Committee and the Board recommend that the Company’s stockholders vote in favor of the proposed transaction.”

“As a private company, we will have increased flexibility to drive innovation across our product lines and execute our long-term strategy. We expect this strategic partnership with Insight, with whom we have worked for many years, will ensure the Company has a secure foundation and a commitment to investment in the Company’s long-term growth,” said chairman and CEO Vinny Smith. “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.”

“Insight has known Vinny Smith for many years and is pleased to support him and management as they seek the stability and long-term focus required for the Company to achieve its potential,” said Michael Triplett, Managing Director at Insight. “We believe that our track record of success working with leading infrastructure management software companies enables us to be strong partners to management while they increase value to all stakeholders in the Company, including employees and customers.”

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Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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