Canaccord Genuity Morning Coffee on Quest Software (QSFT): It Wasn't the Morning Coffee

June 15, 2012 10:44 AM EDT
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Canaccord Genuity Morning Coffee on Quest Software (Nasdaq: QSFT): It wasn't the Morning Coffee.

Quest Software said it received a $2.15-billion cash takeover bid from an unspecified strategic bidder, trumping an earlier offer of nearly $2.00 billion from private investment firm Insight Venture Partners. The new offer of $25.50 per share from the unnamed bidder is a 7% premium to Quest's Wednesday close of $23.86 and could signal a bidding war for the software company. In March, Quest had agreed to a $23 bid from Insight; the offer included a go-shop provision allowing the company to seek a higher offer. Reuters had reported that Dell (Nasdaq: DELL) was planning to offer $23-26 per share to buy the software maker, but that those talks fell through earlier this month. Quest noted that the current offer is fully negotiated, and the agreement is subject only to execution by the company. The proposal is also not subject to any financing contingencies. Meanwhile, Insight will now have three business days to match the superior offer. If Quest goes with a buyer other than Insight, it would be required to pay a break-up fee of $4.2 million ,or $6.3 million if it is after the end of the go-shop period.

Shares are relatively flat this morning, currently trading at $26.04, down $0.03 (-0.10%)

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