Clearlake Capital to Acquire Global Cybersecurity, Data Intelligence and IT Operations … | Your money
Investing to accelerate growth and continue the SaaS booking momentum in One Identity / OneLogin, the industry’s most comprehensive unified identity cybersecurity software platform
New platform investment to drive a robust buy-and-build strategy and support Quest customers and partners through digital transformation in cybersecurity, data intelligence and IT operations
SANTA MONICA, Calif. And ALISO VIEJO, Calif., November 29, 2021 (GLOBE NEWSWIRE) – Quest Software (“Quest” or the “Company”), a global provider of cybersecurity, data intelligence and IT operations management software, announced that it has signed a definitive agreement with Clearlake Capital Group, LP (along with some of its affiliates, “Clearlake”) to acquire the company from Francisco Partners. Patrick Nichols, current CEO of Quest, will continue to lead the company with the support of the existing executive management team. Upon completion of the transaction, Clearlake will become Quest’s majority shareholder. The terms of the transaction were not disclosed.
“We have long admired Quest as the leading identity-centric cybersecurity, data intelligence and IT operations management software platform and software solution that helps secure corporate IT environments,” said Behdad Eghbali, Co-Founder and Managing Partner at Clearlake . “We are excited to work with Quest CFO Patrick and Carolyn McCarthy to leverage Clearlake’s OPS® framework to help the company strengthen its strategic growth plans, including best practices to accelerate cloud / SaaS introduction and to support his buy-and-build strategy. “
“IT teams around the world rely on Quest to solve critical challenges that enable business growth and address key strategic initiatives. Quest has grown to become a leader in identity-centric cybersecurity, data intelligence and IT operations management, and I would like to thank Francisco partners who have helped Quest make that vision come true, “said Patrick Nichols, CEO of Quest.” Our new partnership with Clearlake will accelerate the momentum of Quest as a market leader and innovator as we accelerate our investment in our core product roadmaps, cloud / SaaS offerings and we will continue to grow our customer base as computing environments and the associated management, modernization and security challenges become more and more complex. “
“We are proud of the tremendous strides Quest has made since it started as an independent company, and I would like to thank Patrick Nichols and the management team for their strong execution,” said Dipanjan “DJ” Deb, co-founder and CEO of Francisco Partner. “We have a long and successful track record of conducting business unit carve-out transactions and we are grateful that we had the opportunity to work with the Quest team to create value for the company, its customers and its partners. We wish the Quest organization all the best in their new partnership with Clearlake. “
Quest Software was founded in 1987 and has built a reputation for over three decades as a provider of critical software solutions to security-critical customers and an innovation leader in dealing with rapidly evolving risks and security threats. Quest enables today’s borderless IT ecosystem – across people, applications, and data to endpoints – enabling customers to maintain controls, proactively mitigate and contain security threats, and maintain uptime while reducing costs.
Quest’s main business areas include:
One Identity and OneLogin make Quest the only identity-centric cybersecurity software provider delivering industry-recognized leading solutions for all aspects of a unified identity security and management approach critical to taming the spread of identities and combating identity-based attacks. Platform management for Microsoft ®, which provides software for the resilience and flexibility of IT operations and enables companies to maintain control by securing and managing Active Directory applications faster, with offerings such as Toad for Oracle®, erwin Data Modeler, erwin Data Intelligence, Foglight, ApexSQL and SharePlex®. Software solutions for data protection and endpoint management to control data growth and optimize system availability with NetVault, QoreStore and Kace® offerings.
“It has been a pleasure working with Patrick and the entire Quest management team to scale the business both organically and through strategic acquisitions,” said Brian Decker, Partner and Christine Wang, Principal at Francisco Partners. “Since our partnership with the company, Quest has developed into an innovative market leader in the areas of cybersecurity, data intelligence and IT operations management, offering its customers and partners significant added value.”
“With a robust portfolio of market-leading software and SaaS solutions and a rich history of product innovation, we believe Quest is well positioned to benefit from emerging growth trends in the identity-centric cybersecurity, data intelligence and IT operations management software markets.” said Prashant Mehrotra, partner, and Paul Huber, principal at Clearlake. “Quest is now of considerable size and completely independent in the market, strategically differentiated as a buy-and-build platform and industry consolidator through M&A.”
The transaction is expected to close in the first quarter of 2022, subject to customary regulatory approvals and closing conditions. Goldman Sachs acted as the sole chief financial advisor to Quest. JP Morgan also acted as financial advisor and Paul Hastings LLP acted as legal advisor to Quest.
Silicon Valley Tech Investment Bank and Morgan Stanley served as financial advisor to Clearlake, along with BoA Securities, Barclays, Evercore and William Blair. Sidley Austin LLP acted as legal advisor to Clearlake.
Goldman Sachs, Morgan Stanley, BoA Securities, Barclays, Credit Suisse, BMO Capital Markets and Citigroup provided committed debt financing for the transaction.
About Quest Quest develops software solutions that realize the advantages of new technologies in an increasingly complex IT landscape. Quest supports customers in solving their next IT challenge, from database and system administration to the administration of Active Directory and Office 365 to cybersecurity. Around the globe, managing over 250 million identities, more than 100,000 customers, 15,000 partners and 97 of the Fortune 100 rely on Quest to provide proactive management and monitoring for the next business initiative, the next solution to complex Microsoft challenges find and stay ahead of the next threat. Quest software. Where the next one now meets. More information is available at www.quest.com.
About Clearlake Clearlake Capital Group, LP is an investment firm founded in 2006 that conducts integrated businesses in private equity, credit and other related strategies. Taking a sector-driven approach, the company seeks to work with seasoned management teams by providing patient, long-term capital to dynamic companies that can benefit from Clearlake’s operational improvement approach, OPS®. The company’s core target sectors are technology, industry and consumers. Clearlake currently has approximately $ 55 billion under management and its senior investment principles have directed or co-directed over 300 investments. The company has offices in Santa Monica and Dallas. For more information, please visit www.clearlake.com and Twitter @ClearlakeCap.
About Francisco Partners Francisco Partners is a leading global investment firm specializing in partnering with technology and technology-driven companies. Since its inception over 20 years ago, Francisco Partners has invested in more than 300 technology companies, making it one of the most active and long-standing investors in the technology industry. With more than $ 30 billion in assets under management, the company invests in opportunities where its deep industry and operational expertise can help companies achieve their full potential. For more information on Francisco Partners, please visit www.franciscopartners.com.
Media contacts: For Quest: Mariah Gauthier Highwire Public Relations 951-314-0760 [email protected]
For Clearlake: Jennifer Hurson Lambert & Co. 845-507-0571 [email protected]
For Francisco Partners: Kate Sylvester Sloane & Company 212-446-1860 [email protected]
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