Bidding war breaks out for Quest Software

Quest Software faces the choice of two bidders after a mystery bidder emerged with a better offer over the first suitor.

Quest Software, which has acquired ten plus firms in the last six years, has become a takeover target itself with a bidding war starting over the management application specialist.

The vendor last appeared on the channel radar when it unified its various disparate reseller incentives under one umbrella last summer and had appeared to be heading for fresh owners in the shape of Insight Venture Partners, which chipped in with a $2.17bn offer.

But a fresh offer of $2.32bn has been deemed a superior offer by the board and could derail the Insight Venture Partners plans if the new bidder can get enough backing.

The stakes have been raised and in a statement Quest indicated that the current buyout group could have the option and time to re-table a proposal.

"Under the Existing Merger Agreement, the Buyout Group has certain matching rights, including the right to propose modifications to the terms of the Existing Merger Agreement and related agreements prior to the expiration of a minimum three-business-day period," Quest stated.

But unless a better offer emerges it looks as if the Insight Venture option could be sidelined: "If the proposal continues to constitute a Superior Proposal after the expiration of such period, the Company expects to terminate the Existing Merger Agreement and related agreements and to enter into a binding written definitive agreement in connection with the Superior Proposal."

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