Aliso's Quest Software To Go Private In $2 Billion Deal

Aliso Viejo's technology firm Quest Software has agreed to be acquired by Insight Venture Partners for $2 billion, which includes a modest premium for a company still trying to improve its stature in a hot sector, according to the Wall Street Journal.

Quest, a 25-year-old firm with 3,850 employees, sells enterprise software, information technology management solutions and related services. Its clients include Papa John’s, Amway and the University of Massachusetts Medical School.

Quest has faced mounting competition in its traditional specialty -- software for managing databases -- as vendors such as Oracle Corp. have introduced their own management tools, according to The Journal.  Quest Software has responded by trying to diversify its business by snapping up smaller rivals.

"Frankly, this is the optimal point for a [private-equity] firm to buy Quest because you've done all the ugly work," Wunderlich Securities analyst Brian Freed told The Journal. "What lies ahead of you now, if you execute on it correctly, is reaping the benefits."

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