Private equity house Francisco Partners says it sees a "significant opportunity" to build on Quest and SonicWall after confirming a report that it is clubbing together with activist investor Elliott Management to buy the Dell Software Group.
Francisco Partners has invested in 150 technology firms in its 15-year history and today confirmed that Dell Software will be its latest conquest.
The deal – rumoured by Reuters to be for more than $2bn (£1.4bn) – included debt financing from Credit Suisse and RBC Capital Markets and is subject to customary regulatory review.
"We founded our firm in 1999 to pursue divisional carve-outs in the technology sector and today's agreement continues that vision," said Francisco Partners CEO Dipanjan Deb.
"Quest Software and SonicWALL provide mission-critical software to a large and loyal base of over 180,000 customers, and we see significant opportunity to build on the company's impressive technology and product portfolio. We are excited to be partnering with Elliott Management and want to thank Silver Lake Partners and Dell for their continued partnership."
Brian Decker, head of security investing at Francisco Partners, added: "We see tremendous growth opportunity for these businesses. Network security and identity and access management are increasingly strategic imperatives for enterprises and we are thrilled to support the continued product innovation of Quest Software and SonicWall in these areas."
Reacting to the rumours earlier today, partners took the news in their stride, with one comparing a potential sale of SonicWall to a "haircut rather than an organ removal".
John Swainson, president of Dell Software, added: "We are proud to have built a robust portfolio of software solutions that help make the lives of customers easier. Whether they're managing applications and data, securing their networks, protecting critical information, or deriving key insights from data, customers across the globe have come to rely on Dell Software for top-flight products, service and support. We look forward to continuing that focus as part of the Francisco Partners and Elliott Management portfolio of companies."
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