Dell’s bid to acquire Quest Software hit yet another roadblock after negotiations over price once again fell through.
The break-off is the second in the pairs’ acquisition talks, after Dell’s offer of between $US23 and $US26 per share fell through last month. Quest’s shares dropped 5 percent yesterday following the announcement, closing at $US23.74.
The effort forms part of Dell’s ongoing bid to diversify and expand out of its traditional personal computer roots. Despite the recent set-back, sources told Reuters both companies remain in touch.
Quest originally agreed to be acquired by US-based Insight Venture partners in March for $US23 per share, but later announced it had received numerous further offers during the “go-shop period”.
Quest will face a “break-up” fee of between $US4.2 million and $US6.3 million if it terminates the deal with Insight.
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Issue: 343 | October 2015