Dell expands software services with Quest acquisition

Wednesday - 7/4/2012, 5:53pm EDT

By Esther Carey
Special to Federal News Radio

Computer technology giant Dell acquired Quest Software Monday in an effort to expand its systems management and security capabilities.

Dell is paying $28 per share in cash for Quest, which comes to about $2.4 billion. Dell stated in a press release that the transaction is expected to close in Dell's third fiscal quarter and is subject to approval by Quest's shareholders.

Quest Software provides security tools, such as identity management and access- control applications, database-management software and performance monitoring for applications, networks and databases that lets users continually monitor their IT environments, proactively identifying and remedying performance issues before they become bigger problems.

Dell currently receives $12.2 billion from the government for services, primarily from the Defense Department. The Interior and Agriculture departments are also major federal customers, followed by the General Services Administration and Health and Human Services, according to USASpending.gov.

Quest has a smaller relationship with the federal government, receiving $23 million in total prime contracts. DoD is its primary client, followed by the GSA, Interior and HHS, according to USASpending.gov.

Esther Carey is an intern at Federal News Radio.

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