Dell (NASDAQ:DELL) said on Monday that it will purchase Quest Software (NASDAQ:QSFT) for $28 a share, or $2.4 billion.
In recent months, Quest had been the focus of a bidding contest between Dell and private equity firms. Quest received an initial bid of $23 a share from Insight Venture Partners, which was later raised after Insight teamed with Vector Capital in an attempt to top Dell’s counter bid, the New York Times noted.
Shares of Quest edged slightly lower in Monday mid-day trading, at just under $28, while Dell shares fell more than 1%.
A developer of enterprise software, Quest has $857 million in annual sales.
The acquisition will mark a step outside the computer hardware business for Dell, which plans to use Quest’s technology to boost the running of its networking, storage, server and computing solutions businesses.
The company has been attempting to diversify its operations, purchasing networking and data storage companies in recent years. However, the move will not Dell help improve with its slowing computer hardware business.
Analysts cited by the Times said that Dell was getting Quest for a relatively low price.