Bloomberg reports that Dell is in talk to buy Quest Software. Quest which is specialize in making tools that help companies manage their computer systems. Quest, based in California helps companies manage databases and servers, as well as back up information and recover lost data.
Dell had recently announced its disappointed fiscal 2013 first quarter results with revenue for the quarter was $14.4 billion, 4 percent decrease from the previous year. GAAP operating income was $824 million, and earnings of $0.36 per share.
Jefferies analyst Peter Misek in a recent research note (via ZDNet) argued that Quest Software would be a “logical purchase” in order to round Dell’s cloud strategy:
Despite Dell’s recent flurry of deals, we think an acquisition of Quest makes a lot of sense. We estimate it could be about 5% accretive to Dell’s EPS. Also, Quest’s development and management tools would fit well with Dell’s cloud/software strategy.