Clearlake Capital bulks up software portfolio with Quest deal

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Nov 29 (Businesshala) – Clearlake Capital Group said on Monday it will buy Quest Software from Francisco Partners, as the investment firm seeks to tap into the pandemic-induced boom in demand for enterprise software and cybersecurity tools.

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A source familiar with the matter told Businesshala the deal is worth $5.4 billion, including debt.

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Quest, which counts companies such as Microsoft Corp (MSFT.O), Ford Motor Co (FN) and Merck & Co (MRK.N) as its customers, provides solutions to IT departments from database management to data security. Is.

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Clearlake expects the deal to close in the first quarter of 2022, saying it will hold a majority stake in Quest and that its chief executive, Patrick Nichols, will continue to lead the company.

The private equity firm, with about $43 billion in assets under management, is increasing investment in the software sector as remote work trends gain momentum during the pandemic.

In August, Clearlake said it would take management software provider Cornerstone On Demand private for about $3.8 billion.

The announcement comes just weeks after a consortium led by US private equity firm Advent International agreed to take cybersecurity firm McAfee Corp (MCFE.O) private in a $14 billion deal.

The Wall Street Journal first reported Clearlake’s deal with Quest on Sunday.

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Reporting by Chhavi Mehta in Bengaluru; Ramakrishnan M.

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