Dell Confirms Quest Software CEO's DepartureFriday, December 14, 2012
Dell Inc. has cut all ties with former Quest Software Inc. Chief Executive Vincent “Vinny” Smith.
Smith had been expected to stay on as a company consultant through March following the closing of Dell’s $2.4 billion acquisition of Aliso Viejo-based Quest in September. The role through March was mentioned in a filing with the Securities and Exchange Commission just prior to the deal’s closing.
“Vinny Smith is no longer with the company,” spokesperson Tracy Benelli told the Business Journal.
Officials were unavailable to elaborate on the timing of Smith’s exit.
When its deal to acquire the company closed, Dell declined to detail publicly its planned integration of Quest’s management. Since then, John Swainson, president of Dell’s software division, has supervised a series of moves to integrate Quest operations into Dell.
Smith was set to receive an $8.6 million bonus and another $83,000 per month to provide Dell with “general consulting services” according to an SEC filing in September.
The financial terms of the agreement were thought to offset the value of stock options that were held by Smith and cancelled as part of the deal. He owned more than 30% of Quest’s shares, a stake valued at about $800 million at the time of the sale.
Smith reached the agreement with the Round Rock, Texas-based computer maker after months of tough negotiations, according to sources with the knowledge of the discussions.
Dell has said it plans to use Quest as the foundation to grow software sales past the $5 billion mark in the coming years as it diversifies its product offerings beyond computers.
It’s unclear if the Quest brand will continue once the integration is completed.