Published June 15, 2012
Aging PC maker Dell (DELL) is the mystery party that lodged a $2.14 billion bid this week for Quest Software (QSFT), entering a potential bidding war with venture capital investment firm Insight Venture Partners, according to Reuters.
The $25.50-a-share offer was revealed on Thursday by Quest, which declined to name the bidding party other than to say it is a “strategic bidder.”
The new bid represents a 10.9% premium on Insight’s $23-a-share takeover deal, which was announced in March. The Insight deal contained a “Go Shop” window that allowed Quest to solicit new offers.
Based in Aliso Viejo, Calif., Quest makes software used for enterprise systems management. The company said Insight must up the ante with a higher offer by Sunday otherwise it will go with the mystery bidder.
Dell, which revealed plans earlier this week to begin paying a quarterly dividend to make its shares more attractive, is being advised on the Quest deal by Bank of America Merrill Lynch (BAC), Reuters reported.
As its PC business continues to stumble, Dell has been attempting to diversify its businesses through acquisitions. Dell and Quest already have a business relationship, working together since 2004, Reuters reported.
Wall Street is betting a higher offer will eventually emerge for Quest, nudging its shares above the apparent Dell offer price to close at $26.03 on Thursday. Shares of Dell were recently up 0.16% to $12.36.