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Report: Dell Offers $2.3B For Quest Software, Competing Against Private Equity Firm

Dell (NYSE: DELL) has offered to buy enterprise management software maker Quest for $2.32 billion, Reuters reported on Monday.

Dell is competing with a buyout group led by private equity firm Insight Venture Partners, which originally agreed to buy Quest in March for $23 per share.

According to Reuters, Quest’s board determined this new proposal is superior to other offers and Insight has three days to match or outbid Dell’s latest offer for Quest.

JPMorgan Chase & Co., RBC Capital Markets and Barclays are currently providing approximately $1.2 billion for the Insight-led bid.

Dell chose to be anonymous in the bidding as major tech companies often prefer to keep their identities private during competition, according to the report.

This way, bidders do not feel compelled to overpay and are not embarrassed in the event of an unsuccessful takeover attempt, the report said.

Dell is reportedly buying companies as part of a strategy to diversify from selling personal computers and company executives see software and services as potential areas of growth.

Senior executives said there are more software buyouts in the pipeline, according to the report.

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