Quest Received Buyout Bid Matching $23-a-Share Insight Offer

Quest Software Inc. (QSFT), which agreed last month to be bought by private-equity firm Insight Venture Partners for about $2 billion, received another bid at the same $23-a-share price.

An unidentified financial firm made the alternative proposal on March 6, the Aliso Viejo, California-based company said in a regulatory filing. The new prospective investor also indicated it was willing to participate in the Insight-led transaction.

Quest, a provider of business software for managing and protecting data, decided to proceed with the Insight agreement, announced March 9, because it includes 60 days to shop for a better deal. Quest will pay Insight $4.2 million if it finds another buyer during the so-called “go-shop” period.

Morgan Stanley (MS), Quest’s financial adviser, approached the unidentified bidder as part of the process of assessing the Insight transaction, according to the filing.

The Insight Venture is paying a premium of about 13 percent to Quest’s average 20-day stock price prior to the announcement. That compares to an average premium of 17 percent on more than 1,000 applications-software acquisitions in the past five years, according to data compiled by Bloomberg.

Tom Johnson, a spokesman for Quest, declined to comment beyond the filing.

Quest rose 1.5 percent to $23.43 at the close in New York. The stock has gained climbed 26 percent this year.

To contact the reporter on this story: Ian King in San Francisco at;

To contact the editor responsible for this story: Tom Giles at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.