An transaction with an interesting Czech footprint will take place on the global software market. Clearlake Capital Fund is acquiring the American company Quest Software for $ 5.4 billion from Francisco Partners and Elliott Management. In 2006, it acquired the Ostrava company Charonware and on this basis built a development center in the former mining town.
Charonware was founded in 2000 in the cellar under one Ostrava pizzeria by David Fux and Radim Kunz. They began to develop a prototype technology for working with computer databases. They managed to sell it all over the world, especially at the internet. In 2006, they agreed to sell into Quest Software, which Charonware included in its flagship Toad database offering.
Subsequently, the Czechs came under the wings of the giant Dell, which bought Quest in 2012 for $ 2.4 billion. Dell was then trying to build a new software division.
But founder and CEO Michael Dell eventually decided to take the company out of the stock market and subsequently bought EMC and the VMware majority for $ 67 billion. Both events were largely financed by loans, and Dell’s portfolio, including Quest, was sold out. Francisco Partners and Elliott Management won Quest in 2016 for about a billion dollars.
During the era of the original Quest and Dell, investments were made in Ostrava and the former Charonware grew to dozens of people. “We have proven that there is technical quality in the Czech Republic. We delivered the top quality product, “said David Fux, who has already left Quest.
After the sale of Quest to Francisco Partners and Elliott Management, there was a gradual decline in activities in Ostrava and the departure of many employees. Waves of redundancies swept through the company. Employees are off-record about “maintenance” and generating seemingly good financial results through layoffs and savings. Quest does not comment on the situation.