Private equity firm Clearlake buys software firm Quest for $5.4 billion

Private equity firm Clearlake buys software firm Quest for $5.4 billion

November 29, Clearlake Capital Group said on Monday it would buy Quest Software from Francisco Partners, as the investment firm tries to tap into the pandemic-spurred surge in demand for enterprise software and cybersecurity tools.

A source familiar with the matter told Reuters that the deal values Quest at $5.4 billion, including debt.

Its customers include Microsoft, Ford Motor Co and Merck Co, and provides solutions ranging from database management to data protection to IT departments.

Clearlake expects the deal to close in the first quarter of 2022, and that it would hold a majority stake in Quest and its chief executive, Patrick Nichols, will continue to lead the company.

The private equity firm, with around $43 billion in assets under management, has increased investments in the software sector as remote working trends gain momentum during the pandemic.

Clearlake said in August it would take management software provider Cornerstone OnDemand private for about $3.8 billion.

The announcement came just weeks after a consortium led by U.S. private equity firm Advent International agreed to take cyber security firm McAfee Corp private in a $14 billion deal.

Clearlake was first reported to have a deal with Quest on Sunday, according to the Wall Street Journal.