Dell to Acquire Quest Software Dave Johnson John Swainson SVP, Corporate Strategy, Dell President, Software Group, Dell Brian Gladden Rob Williams SVP, Chief Financial Officer, Dell Vice President, Investor Relations, Dell Vinny Smith Scott Davidson Chairman & CEO, Quest Software Senior Vice President & Chief Financial Officer, Quest Software July 2, 2012 Exhibit 99.2 |
Investor Relations Forward-looking statements Statements that relate to future results and events are forward-looking statements based on Dell's and Quest’s current expectations. Actual results and events in future periods may differ materially from those expressed or implied by these forward-looking statements because of a number of risks, uncertainties and other factors. Risks, uncertainties and assumptions include the possibility that projected benefits may not materialize as expected; that the transaction may not be timely completed, if at all; that Dell and Quest are unable to successfully implement the plans, strategies and objectives of management for future operations, including the execution of integration strategies; and other risks that are described in Dell’s or Quest’s Securities and Exchange Commission reports. Neither Dell nor Quest undertake any obligation to update these forward-looking statements. 2 |
Investor Relations Committed to our strategy Delivering end-to-end solutions with scalable, mid-market design point 3 |
Investor Relations Quest Software at a glance Transaction - Approved by Board of Directors of each company Company - Quest is a leading provider of enterprise software solutions 4 * Consistent with typical software acquisitions, post-acquisition earnings will be impacted by purchase accounting adjustments to Quest’s deferred revenue balance -- estimated deferred revenue adjustment and transaction costs of approximately $500M (excludes amortization of intangibles) • Employees 3,850 (HQ in Aliso Viejo, CA) • Sales Organization 1,440 sales reps (~23% systems engineers) • R&D Organization 1,279 software engineers • Customers over 100k worldwide Financials – GAAP financial statements for 12-month period ending 12/31/2011 • Transaction Facts $28 per share / $2.4B enterprise value • Earnings Accretion / Closing Will update at closing (estimated close in 3Q, FY’13) * • Revenue $857M (+12% Y/Y) • Gross Margin $734M (86% of revenue) • Operating Income $ 91M (11% of revenue) • Cash Flow from Operations $195M (4.4x Net Income) |
Investor Relations Dell leadership in software Software’s intersection with our core strengths allows us to create solutions that bridge customers to new computing paradigms seamlessly Client Services Enterprise Software Server, storage and networking capabilities Services, Security, Cloud End-user computing Software that leverages Dell core strengths 5 |
Investor Relations Quest’s diversified software portfolio 6 Windows Server Management Performance Monitoring Data Protection User Workspace Management Database Management Identity & Access Management Quest Windows Server Mgmt Quest Foglight Quest NetVault Quest Workspace Quest One Quest Toad • Quest addresses enterprise software segments totaling ~$30B and projected to grow to ~$43B by FY16, representing a CAGR of 10% 1 • Including Quest, Dell will have a software business that generated over $1.2 billion of revenue in 2011 2 1 Dell Internal Analysis, IDC, and Gartner 2 Pre-acquisition revenue figures, excludes estimates for purchase accounting adjustments Provides a platform foundation to expand Dell’s software capabilities |
Investor Relations Quest Segments Quest strengthens key areas of Dell’s end-to-end solution capabilities 7 Data Protection Windows Server Mgmt User Workspace Mgmt Performance Monitoring Database Management Identity and Access Mgmt Dell Complementary Solutions Application Modernization (with Dell Clerity & MAKE) Systems Management (with Dell KACE) Data Backup and Recovery (with Dell AppAssure) Security (with Dell SecureWorks & SonicWALL) Database Management (NEW capability with Quest) |
Investor Relations Quest is consistently recognized as a leader Source: Gartner, September 2011 • “Quest One Identity Manager has significant Identity and Access Governance functionality, including a robust identity data model, discovery and analytics tools for constructing an identity warehouse, a mature workflow offering, and mature user interface design tools.” – Gartner Magic Quadrant for Identity and Access Governance, Dec 2011 • Gartner places Quest’s Application Performance Monitoring solution in the Leader’s quadrant of it’s Magic Quadrant, stating that “Foglight's distinctive model-centric architecture provides an integrated approach to the five dimensions of APM” – Gartner Magic Quadrant for Application Performance Monitoring, Sept 2011 8 |
Investor Relations Quest strategically aligns with Dell’s software strategy 9 • ~$19B Enterprise Solutions & Services business spanning servers, storage, networking, services, and software • End-to-end IT solutions designed to scale with a mid-market design point • Global scale & reach Enterprise Software Portfolio & Software Engineering Talent Enterprise Software Portfolio & Software Engineering Talent Total Enterprise Solutions & Global Reach Total Enterprise Solutions & Global Reach • $857M software business, built on simple-to- use solutions to common IT challenges • Support heterogeneous and next-generation virtualized environments • Deep engineering capabilities with 1,300 software engineers Quest’s enterprise software portfolio complements Dell’s end-to-end enterprise solutions |
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