Quest Software Inc. has received buyout offer worth about $2.15 billion from an unnamed party, a proposal superior to an existing offer that may create a bidding war for the business software maker.
Quest's stock soared $2.10, or 8.8 percent, to $25.97 in midday trading on Thursday.
Quest said it has received an offer of $25.50 per share from an undisclosed buyer. The offer is a 7 percent premium to the company's Wednesday closing price of $23.86.
In March Quest announced that it was being purchased by investment firm Insight Venture Partners for $23 per share. At the time, the company said the Insight deal was valued at about $2 billion. Quest had 60 days to solicit and review bids from potential buyers.
Last month published reports said that Dell was in discussions with Quest about a potential transaction. Quest and Dell both declined to comment on the reports at that time.
Quest said Thursday that its board has decided that the $25.50 per share bid is superior and that it informed Insight of the bid. Insight has three days to match the offer.
If Quest goes with a buyer other than Insight, it would be required to pay a break-up fee of $4.2 million or $6.3 million. The exact amount of the fee would be determined by the timing of the new proposal.