At what enterprise value was QUEST SOFTWARE acquired in 2022?

During the acquisition of QUEST SOFTWARE by CLEARLAKE CAPITAL in 2022, the transaction's Enterprise Value is estimated to be in the range of 3b - 100b USD.

What was the EV/EBITDA of QUEST SOFTWARE when it was acquired by CLEARLAKE CAPITAL?

The estimated EV/EBITDA multiple for QUEST SOFTWARE is in the range of 10x - 18x.

When was QUEST SOFTWARE acquired by CLEARLAKE CAPITAL?

QUEST SOFTWARE was acquired by CLEARLAKE CAPITAL in 2022.

What was the revenue of QUEST SOFTWARE at the time of the deal?

The revenue of QUEST SOFTWARE at the time of the deal is estimated to be in the range of 750M - 1.3b USD.

What was the EBITDA of QUEST SOFTWARE during the acquisition?

QUEST SOFTWARE's EBITDA is estimated to be in the range of 250M - 500M USD.

How is the data for the QUEST SOFTWARE acquisition sourced and is it reliable?

Mynth data is contributed by a professional community of M&A and Private Equity experts. Each transaction, including the QUEST SOFTWARE deal, is systematically cross-verified by our team using private deal documents and official sources. You can also find the official press release for this transaction here: https://clearlake.com/news/clearlake-capital-completes-acquisition-of-quest/

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Home Database TMT (Tech, Media, Telecom)QUEST SOFTWARE

02/2022

QUEST SOFTWARE acquired by CLEARLAKE CAPITAL

UNITED STATES Software / Data, Analytics & AI EV 3b - 100b USD

Context

Clearlake Capital Group has successfully completed the leveraged buyout of Quest Software, acquiring the asset from the preceding financial sponsor, Francisco Partners. The transaction was structured as an LBO and financed through the broadly syndicated loan market with first and second lien debt tranches. Leverage metrics were highly aggressive, reaching approximately 7.0x through total debt, a capital structure facilitated by robust demand for leveraged loans from CLOs and institutional accounts. This acquisition represents a highly strategic platform investment for Clearlake Capital, designed to execute an accelerated buy-and-build strategy within the fragmented infrastructure software sector. The core thesis revolves around operationalizing Quest’s recent pivot toward growth-oriented acquisitions and expanding its cybersecurity capabilities. Clearlake intends to leverage its proprietary O.P.S.® value creation framework to integrate dilutive add-ons and drive margin improvement. Furthermore, the sponsor aims to capitalize on secular trends demanding application migration, cloud deployment, and advanced data protection.

QUEST SOFTWARE, which reported an EBITDA margin of in 2022, is valued in this transaction at an EV/EBITDA multiple of , representing a to the average currently observed in the TMT (Tech, Media, Telecom) sector (13.7x).

-> Deep-dive in TMT (Tech, Media, Telecom) market trends

Target

Quest Software is a prominent United States-based technology company specializing in cybersecurity, data intelligence, and IT operations management software solutions. Founded in 1987, the firm has established itself as a critical software solution provider for security-sensitive customers and an innovator in addressing rapidly evolving risks. The company's diverse product portfolio addresses database and systems management, Active Directory and Office 365 administration, and overarching cybersecurity resilience. From a market positioning standpoint, Quest Software operates as a distinguished leader in the identity-centric cybersecurity and IT operations markets. The company demonstrates significant market penetration and robust recurring revenue streams, serving over 100,000 customers globally, including 97 of the Fortune 100, alongside an ecosystem of 15,000 partners. Quest's business model relies on delivering mission-critical software that enables organizations to proactively mitigate security threats, maintain tight operational controls, and ensure operational up-time while optimizing overall IT expenditures.

Ent. Value

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2022

2021

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REFERENCES

Valuation range: EV 3b - 100b USD

Revenue range: 750M - 1.3b USD

EBITDA range: 250M - 500M USD

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of QUEST SOFTWARE by CLEARLAKE CAPITAL are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Press release: view release

Target: quest software

Acquirer: clearlake capital