Francisco Partners bought Quest Software in 2016 when Dell sold some assets to help pay off the massive $ 67 billion EMC contract. Dell itself bought Quest in 2012 for $ 2.4 billion. Today the company was on the move again, with Clearlake Capital taking over this time.
According to the Wall Street Journal, the company bought Quest for $ 5.4 billion. Reuters reported in 2016 that Francisco and Elliot Management paid around $ 2 billion for Quest and another asset, SonicWALL. If all of those numbers are right, Francisco made a nice little profit on his 2016 investment and managed to get the company to more than double in value. It should be noted that the parties have not officially recognized the award.
Although a private company does not have to reveal its financial data, it seems likely that Quest has been doing quite well since the 2016 transaction. Perhaps even more telling is that Clearlake decided to keep CEO Patrick Nichols and his entire management team.
Quest is your classic legacy security provider. The business was founded in 1987 and has been mixed between owners, modernizing along the way and managing to stay alive and grow in value.
Dipanjan “DJ” Deb, co-founder and CEO of Francisco Partners, is rightly proud to make Quest a more valuable property under his leadership.
“We have a long and successful track record of executing divisional division transactions and we are grateful for having had the opportunity to work with the Quest team to create value for the company, its customers and its partners, ”Deb said in a statement on the deal.
The company has built a stable of security products, including One Identity and OneLogin identity products. It also offers an endpoint solution and a Microsoft-focused security product, among other products and services. Clearlake has certainly appreciated the large portfolio and customer base Quest brings to them.
“With a strong portfolio of market-leading SaaS software and solutions as well as a rich history of product innovation, we believe Quest is well positioned to capitalize on emerging growth trends in cybersecurity software markets,” data intelligence and IT operations management. Clearlake’s Prashant Mehrotra and Paul Huber said in a statement.
The deal is expected to close early next year pending standard regulatory approval.