Quest Software Pops 5% on Superior Bid

Shares of Quest Software (NASDAQ: QSFT) are seeing increased strength during Monday's trading session after the company announced it received a surperior bid from a "strategic bidder".

Quest Software announced the receipt of a proposal from a strategic bidder, which has been rumored to be Dell (NASDAQ: DELL) by a few sources, to acquire all of the outstanding shares of Quest for $27.50 per share in cash. This values the company at a little more than $2.3 billion.

According to the company's release, Quest's Board of Directors, acting through the special committee of independent directors established by the Company's Board of Directors, determined that the proposal constitutes a Superior Proposal, as such term is defined in the Agreement and Plan of Merger dated March 8, 2012, as amended on June 19, 2012, among Quest and affiliates of Insight Venture Management, LLC and Vector Capital. In making its determination, the Special Committee consulted with its independent financial advisors and outside legal counsel.

Currently, shares of Quest Software are trading up about 5.25 percent at $27.60 per share.

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