Clearlake Capital Buys Quest Software for $5.4 Billion

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Clearlake Capital, a private-equity firm, is buying Quest Software from Francisco Partners, a technology-focused PE firm, The Quest was announced on Monday.

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Financial terms were not announced, but Quest is valued at $5.4 billion, a person familiar with the matter said. Following the close of the deal, which is expected in the first quarter of 2022, Clearlake will become a majority stakeholder.

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Francisco Partners, which is based in San Francisco, stands to make 6.5 times its money with the sale, the person said.

The transaction represents Quest’s latest sale. Founded in 1987, Quest provides software that departments of information technology use to mitigate and control security threats. The company also provides database management. In a statement, CEO Patrick Nichols remains.

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Nicolas said in the statement, “Quest has grown to become a market leader in identity-focused cyber security, data intelligence and IT operations management and I would like to thank Francisco Partners for helping Quest realize this vision. Am.”

Dell Technologies (ticker: Dell) bought the quest in 2012 for $2.4 billion. In 2016, Francisco Partners, along with Elliot Management, Acquired Dell Software Group—Quest was part of the entity—for $2.4 billion. Dell sold the group as it was trying to raise funds for the $67 billion purchase of EMC, which was also a technology company.

Francisco Partners, led by co-founder and CEO Dipanjan “DJ” Deb, Invests in technology and technology-enabled businesses in areas such as fintech, healthcare IT and software.

Clearlake, which is based in Santa Monica, California, targets sectors including software and technology-enabled businesses, industrial and energy firms, and consumer companies. The firm is led by co-founders and managing partners Jose Feliciano and Behdad Eghbali.

“With a rich history of product innovation, as well as a strong portfolio of market-leading software and SaaS solutions, we believe Quest will drive emerging growth in the identity-focused cyber security, data intelligence and IT operations management software markets. Well positioned to capitalize on the trends,” he said. Clearlake Partner Prashant Mehrotra and Principal Paul Huber said in a statement.

sales news was told earlier by Wall Street Journal.

Write to Louisa Beltran at [email protected]

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