Quest Software to buy up to 11.3% of its shares in Dutch auction offer

By Lisa Kerner

Charlotte, N.C., June 1 - Quest Software, Inc. said it will begin a Dutch auction tender offer on or about Tuesday for up to 10,715,000 shares, or approximately 11.3%, of its common stock outstanding.

According to Quest, the purchase price will not be greater than $14.00 or less than $12.50 per share for a maximum total purchase price of approximately $150 million.

Quest stock closed at $12.92 (Nasdaq: QSFT) on Friday.

The offer will remain open for at least 20 business days.

If the offer is subscribed in full, the voting securities held by the company's executive chairman Vincent C. Smith will increase to approximately 34.3% from approximately 30.4%.

As of March 31, Quest had approximately $310.6 million in cash and cash equivalents, restricted cash and short-term and long-term investments and no outstanding balance under its revolving credit facility, a company news release said.

The information agent for the offer is MacKenzie Partners, Inc. (800 322-2885).

Quest Software is an enterprise systems management vendor based in Aliso Viejo, Calif.

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