Quest Software Inc., which was acquired in September for $2.4 billion by Round Rock, Texas-based Dell Inc., could see another shake-up to its ownership soon.
Dell founder and Chief Executive Michael Dell—who owns nearly 16% of the company and also runs New York private equity firm MSD Capital—is leading a management buyout with at least two other private equity companies, according to several media reports.
The price tag is expected to top $20 billion, with Quest accounting for some 10% or more of the total value. Dell reportedly wants to take his company private as it seeks to develop new business lines beyond personal computers. The acquisition of Quest late last year was seen as a key step in that direction.
The software maker is one of the few growth drivers for Dell, the world’s third-largest computer maker. Quest, which saw $857 million in sales in 2011, was coveted by Michael Dell as he moved to diversify the company’s core offerings beyond personal computers, a sagging market.
The Quest buy was Dell’s second largest to date. The company acquired Texas-based IT provider Perot Systems for $3.9 billion in 2009.
Dell has said it plans to use Quest’s technology and customer base as the foundation to grow software sales past the $5 billion mark in the coming years.
Quest makes software that helps manage and improve other business products from various companies, including Redmond, Wash.-based Microsoft Corp., IBM Corp. of New York and Redwood Shores-based Oracle Corp.
It became a market leader under Chief Executive Vincent “Vinny” Smith in database development and optimization, with more than 2 million users, and a major presence in Microsoft’s infrastructure-management market. Smith also is credited with developing simplified applications for cloud computing and virtualization.
The company recently got a nod from Stamford, Conn.-based market tracker Gartner Inc., which moved the company into its leaders quadrant for user administration and provisioning. The designation, which is tracked in the industry, designates companies that offer comprehensive identity and access-management services, both of which have become increasingly important as the technology landscape shifts to cloud computing, social media platforms, and more employees bringing their own devices to work.
Kofax Gets Contracts
Kofax PLC has attracted a few notable contracts with its latest product offering geared for mortgage companies and banks. The offerings hit the market in October.
The company, which is publicly traded in London but maintains its operational headquarters in Irvine, recently announced that it secured a contract worth more than $1 million from one of the largest U.S. subprime mortgage servicers. The customer will use its Kofax Capture, Kofax Transportation Modules and Kofax Monitor products.
That follows a $500,000 contract with an unnamed U.S. regional bank, which will use the products to capture and transfer images from more than 20 million documents it handles annually.
The suite of software and mobile application products allow lenders, brokers and borrowers to capture and extract relevant information from supporting documents and deliver it directly into loan-processing systems.
Kofax makes scanning software used by businesses to streamline the flow of information, eliminate paper, speed up productivity, reduce costs and improve customer service.
Kofax typically does not provide customer names when announcing a deal. The Business Journal has reported that its largest customers include New York-based JPMorgan Chase & Co., Reuters in London, and Allianz SE.
Kofax is OC’s eighth-largest software maker by revenue, according to Business Journal research.
The company saw a 5% rise in profit to $16 million from continuing business in fiscal 2012, which ended June 30.
It saw an 8% rise in 12-month revenue to a company-record $262.5 million.
Quantum Leap?
Lake Forest-based Quantum Fuel Systems Technologies Worldwide Inc.’s bid to capitalize on the growing compressed natural gas market is showing early signs of success.
The company recently announced purchase orders of $600,000 to supply its ultralightweight Q-Lite CNG fuel storage tanks for light-duty vehicles to an undisclosed customer.
That deal came on the heels of a $2.5 million contract inked earlier this month to provide fuel-storage systems for Greenkraft Inc., a Santa Ana-based manufacturer of commercial trucks and automotive products.
“Our business plan in 2013 is centered on CNG and will be driven by the momentum created in 2012,” Chief Executive Brian Olson said.
New purchase orders in that segment rose 230% to $14.2 million in the first nine months of 2012.
