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Dell plans Quest Software purchase

In a move to branch out beyond the weakening personal computer business, Dell said Monday that it's buying Quest Software for about $2.36 billion.
Published: July 3, 2012
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Technology update

Dell plans $2.36B Quest purchase

In a move to branch out beyond the weakening personal computer business, Dell said Monday that it's buying Quest Software for about $2.36 billion.

Dell said Quest would make it more competitive in the server, storage, networking and computing services business.

Quest helps companies manage databases and provides other corporate IT services. Quest's technology would add to its security and data protections offerings, along with other services aimed at business customers, Dell said.

With the deal, Dell, the second-largest U.S. PC maker after Hewlett-Packard Co., is trying to diversify beyond the lower-margin business of making personal computers.

PC sales have weakened in the last two years as consumers increasingly navigate the Internet on smartphones and tablet computers such as Apple Inc.'s hot-selling iPad.

Both Dell and HP have been buying software and technology services companies to expand beyond PCs and plumb the more fertile territory of advising big companies and government agencies on how to manage their technology needs. As part of that process, the companies hope to sell more software and computing equipment.

Dell's acquisition comes in the midst of some belt-tightening at the company. In June, it outlined a plan to trim expenses by $2 billion over the next three years.

The deal is expected to close in Dell's August-October quarter. Both boards have approved the deal, but Quest shareholders must still vote it through.

Associated Press

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