Quest To Buy Data Protection Software Company BakBone For $55 Million

Quest Software is to acquire BakBone Software, a San Diego, CA-based provider of data protection software. Quest in a statement says it expects to pay approximately $55 million, including the payment of certain debt obligations and net of anticipated cash on hand.

BakBone shareholders will receive $0.33 per common share and $1.29 per preferred share following the closing of the acquisition, which is expected to occur in the first quarter of 2011.

BakBone Software delivers real-time data protection, deduplication, replication, disk-based and tape backup and recovery services. Quest says it is buying the firm to complement its portfolio of solutions for virtual, database and application-level data protection with BakBone’s proprietary data protection technologies.

For the full fiscal year 2010, BakBone’s revenues reported last June totaled $61.9 million, 10% above the $56 million in revenues in fiscal 2009. The company reported a net loss for fiscal 2010 of $9.8 million, or $0.12 per share. Bookings for fiscal 2010 totaled $56.5 million.

The company acquired email processing and delivery services provider ColdSpark in May 2009, only to shut down the loss-making unit merely a year later. The decision to shed ColdSpark came one month after BakBone appointed former CFO Steve Martin as Interim CEO, following the resignation of the Company’s President and chief executive James R. Johnson.

In other words, someone made a big mistake that cost the company dearly.