Quest Software Inc., the software maker that agreed to be bought by a group led by Insight Venture Partners, said it has received a higher offer of $27.50 a share in cash, the third takeout deal the company has announced.
The bid from an unidentified stategic suitor is superior to a $25.75-a-share offer Quest accepted from Insight last week, the Aliso Viejo, California-based software company said today in a statement. Dell Inc. had previously offered to acquire Quest, according to a person familiar with the matter.
Quest said on March 9 it agreed to be acquired by Insight for $23 a share, and two months later said it received several other proposals that it anticipated would lead to a superior offer. Chief Executive Officer Vincent Smith prefers a sale to Insight over Dell because it would allow him to keep running the company, said the person, who asked not to be named because the negotiations are private.
Tracy Benelli, a Quest spokeswoman, and Jess Blackburn, a Dell spokesman didn't immediately return calls for comment. Blair Flicker, general counsel at Insight Venture Partners, declined to comment.
Quest's shares surged as much as 8.8 percent to $28.52 in early trading, after decreasing 0.2 percent to $26.22 at the close in New York on June 22.