In a deal worth around $55 million (£34.3 million), Quest will acquire heterogeneous data protection technologies from BakBone that complement its portfolio of solutions for virtual, database and application-level protection.
The deal will be conducted by way of a statutory plan of arrangement under the Canada Business Corporations Act and will require approval of the BakBone security holders and the Court of Queen's Bench of Alberta. The closing of the purchase, which is subject to customary closing conditions, is expected to occur in the first quarter of 2011.
Doug Garn, CEO and president of Quest Software, said: “Quest continues to innovate by delivering data protection solutions to address one of the key pain points facing every organisation, the ever-expanding amount of data being created.
“BakBone meets these criteria. Our respective products are highly complementary, with minimal overlap. The value received from BakBone's employees, technologies, partners and customers is expected to be a key benefit as we seek to expand our market share in the data protection market by building upon our core portfolio.”
Steve Martin, interim CEO and CFO of BakBone, said: “We are pleased that we have been able to enter into this definitive agreement on behalf of BakBone's shareholders. Quest has a rich history of recognising new technologies in emerging markets and bringing them to a wider audience through its network of worldwide customers.
“We are confident that we will see even greater success for our solutions as part of the Quest family, and pleased that Quest saw value in adding us as an integral part of its data protection portfolio.”