Dell buys Quest Software for $2.4 billion

@CNNMoneyTech July 2, 2012: 10:28 AM ET

NEW YORK (CNNMoney) -- Dell announced Monday that it has agreed to buy Quest Software, a company that makes management tools for corporate IT departments.

The $2.4 billion cash deal has been widely expected for several weeks. Quest announced in mid-June that it had received an offer from an unnamed company; Dell's name soon emerged as the likely buyer.

Dell (DELL, Fortune 500) said the company fits well with its IT services unit, which is its fastest-growing line of business.

Dell will buy each share of Quest for $28 a share, 17% above the closing price before Quest initially announced Dell's offer.

Quest (QSFT) had initially accepted a $2 billion buyout offer from private equity firm Insight Venture Partners in March. But the company said on June 14 that it had received a higher bid, which ultimately turned out to be from Dell.

Dell's $28 per share bid is 44% above Quest's stock price before the Insight's bid was first announced.

Dell is no stranger to bidding wars, but it doesn't always come out on top. The company engaged in a brutal battle with Hewlett-Packard (HPQ, Fortune 500) over cloud storage company 3par in 2010. After nine back-and-forth bids, HP eventually won the battle for nearly double Dell's original offer. To top of page

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.