Law Firm Brower Piven Announces Investigation in Connection With Quest Software, Inc. Buyout

The law firm of Brower Piven, A Professional Corporation, has commenced an investigation into possible breaches of fiduciary duty to current shareholders of Quest Software, Inc. (NASDAQ: QSFT) (“Quest”) and other violations of state law by the board of directors of Quest relating to the proposed acquisition of the company by private equity and venture capital firm Insight Venture Partners (“Insight”). The firm’s investigation seeks to determine, among other things, whether the board breached its fiduciary duties by failing to maximize shareholder value.

On March 9, 2012, Quest announced that it had entered into a definitive agreement providing for Insight to acquire Quest for approximately $2.0 billion. Under the terms of the merger agreement, Quest shareholders will receive $23.00 for each share of Quest common stock held. However, according to Yahoo! Finance, at least one analyst has set a high price target of $29.00 per share, and Quest shares have traded above the deal price as recently as July 2011. Additionally, according to Bloomberg, the EBITDA, EBIT and revenue multiples for the proposed buyout transaction are lower than the median multiples for comparable transactions.

Chairman and CEO of Quest, Vinny Smith, who owns approximately 34 percent of the current outstanding shares of Quest, has already agreed to vote his shares in favor of the transaction. The transaction is expected to close in the third quarter of 2012.

If you currently own shares of Quest and would like to learn more about the investigation being conducted by Brower Piven, you may email or call Brower Piven, who will, without obligation or cost to you, attempt to answer your questions. You may contact Brower Piven by email at hoffman@browerpiven.com, by calling (410) 415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and other class action cases of over 60 years.

Quest Software, Inc. (MM) (NASDAQ:QSFT)
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