Clearlake Capital bulks up software portfolio with Quest deal

By Reuters

<div> <p>By Chavi Mehta</p> <p> – Clearlake Capital Group said on Monday it would buy Quest Software from Francisco Partners, as the investment firm seeks to tap into the pandemic-spurred surge in demand for enterprise software and cybersecurity tools.</p> <p>The deal values Quest at $5.4 billion, including debt, a source familiar with the matter told Reuters. </p> <p>Quest, which counts companies like Microsoft Corp, Ford Motor Co and Merck & Co as its customers, provides solutions spanning from database management to data protection to IT departments.</p> <p>Clearlake expects the deal to close in the first quarter of 2022, saying it would hold a majority stake in Quest and its chief executive, Patrick Nichols, will continue to lead the company. </p> <p>The private equity firm, with about $43 billion in assets under management, has been ramping up investments in the software sector as remote working trends gain momentum during the pandemic. </p> <p>In August, Clearlake said it would take management software provider Cornerstone OnDemand private for about $3.8 billion.</p> <p>The announcement also comes 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.</p> <p>The Wall Street Journal first reported Clearlake’s deal with Quest on Sunday.</p> <p/> </div>