According to sources familiar with the matter at hand, private equity firm Clearlake Capital has struck a deal to acquire Quest Software Inc from Francisco Partners, valuing the deal at $5.4 billion including debt.
The deal is likely to be formally announced later today.
Incidentally, Quest was part of Dell’s software division which the latter 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.
Neither Clearlake, Quest or Francisco Partners immediately responded to requests for comments.
According to analysts, Clearlake was paying 10.9 times Quest’s earnings before interest, taxes, depreciation and amortization for the last 12 months.