Computer Support Blog

While there are many companies in the tech sector whose names and products are easily recognizable – Microsoft, Google, and Apple, for example – there are other companies whose names are frequently mentioned, but their product lines remain a mystery to the general population.  For example, many Americans would probably say they have heard of Oracle and know that it is a big business within the tech sector.  The population would be dramatically smaller, though, of Americans who could identify a specific product from Oracle.  In a similar fashion, “Quest” often appears on technology and business updates, but what the multibillion dollar company produces is unclear to many who do not have direct dealings with the company.

Quest Software specializes in enterprise software, that is, programs for businesses specifically tailored to each business.  If you have ever worked for a company that has its own unique tracking or sales software for personal computers or specialized computer devices (like touchscreen cash registers), you have used enterprise software!  Quest Software is a company that writes programs that make specialized hardware run or perform in ways that meet the needs of individual business clients.  For years, it has been publicly held – you can own stock in the company and thus own a piece of the company – but executives from Quest Software recently announced a willingness to “go private.”

That announcement has led to a bidding war between companies like Insight Venture Partners and Vector Capital and a bidder, widely believed to be Dell Computers, that has driven the value of Quest Software up to $2.32 billion from $1.94 billion when it originally agreed to go private.  In “going private,” a bidder who wanted to purchase Quest Software would have to pay off all of the stockholders in order to put the company in the hands of a new individual or company.  Stockholders are fostering the bidding war because it means they will make more money when the sale goes through.  In anticipation of the next bid, stockholders have driven the price of Quest Software stock up, indicating a belief that a bid of $2.33 billion or more might come from Insight Venture Partners.

Why are so many companies interested in Quest Software?  First, Quest Software has had solid, consistent earnings over its twenty-five year history.  Second, venture capitalists could use the software as leverage in the start-up process to recoup some of their capital faster (i.e. make seeding money to a start-up conditional upon the use of their enterprise software, which the new company will later have to pay a license fee for, etc.).  Other companies might use the acquisition of Quest Software to beef up the enterprise component of their business.

Whatever the motivations of the bidders are, Quest Software is once again a very hot commodity in the tech and business sectors!

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RESCUECOM provides computer repair and computer support, 24/7: Meeting every tech support need including data recovery, virus removal, networking, wireless services, and computer support for all brands of hardware and software. For computer support or information on products, services, or computer repair, visit https://www.rescuecom.com or call 1-800-RESCUE-PC.

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david@rescuecom.com

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