Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Quest Software (NAS: QSFT) are soaring today by as much as 27% after the company announced it has agreed to go private.
So what: Private-equity firm Insight Venture Partners has agreed to pay $23 per share, a 19% premium over yesterday's close, to take Quest private in a deal that values the company at $2 billion. The deal includes a 60-day window in which Quest can shop itself to other potential suitors to see if it can grab a better offer, but it would have to pay a $4.2 million breakup fee.
Now what: After that window expires, the amount of the breakup fee would jump to $6.3 million. Chairman and CEO Vinny Smith will continue to lead the company after the transaction closes, and the company's board has unanimously approved the deal. Smith holds more than a third of the company, and that ownership will be rolled over into the new private company.
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