Ordinarily, I couldn't be bothered about some petty $B transaction, but since this impacts our global customer base as well, its worth taking a few minutes to shed light on.
For those not in the know, Quest Software recently decided to play high-stakes poker by involving their friend “Insight Ventures” to create a window-of-opportunity for potential acquirers to engage in a bidding war. By setting a base price of US $2B, they ensured that any offer made would exceed that unearthly amount (50x 2011 earnings!)
The only losers here seem to be J.P. Morgan Chase, RBC Capital Markets, Barclays Capital, and Vector Capital, each of whom Insight Ventures, a good friend of Quest Software, seem to have somehow convinced that Quest is worth $ 2B (i.e. even with 2011 net earnings being a petty $40M), so they could partake in footing the majority of the bill to take Quest Software private.
July 02, 2012 update: Dell Acquires Quest Software