Private equity firm Clearlake Capital has struck a deal to buy Quest Software Inc. from Francisco Partners, valuing the Aliso Viejo, California-based company at $5.4 billion including debt.
Quest was part of Dell's software division, which the company divested in 2016 to focus on its technology portfolio and bolster its balance sheet after it agreed in October to buy data storage company EMC for $67 billion. Quest provides software solutions to IT departments spanning from database management to data protection.
Clearlake, Quest and Francisco Partners did not immediately respond.
The report added that Clearlake was paying 10.9 times Quest's earnings before interest, taxes, depreciation and amortization for the last 12 months.
Clearlake Capital Group, L.P. is an investment firm operating integrated businesses across private equity, credit and other related strategies. With a sector-focused approach, the firm seeks to partner with experienced management teams by providing patient, long term capital to dynamic businesses that can benefit from Clearlake’s operational improvement approach, O.P.S. The firm’s core target sectors are technology, industrials, and consumer.