Companies that produce the kind of growth that Smarsh has inevitably attract suitors. But don't look for a buyout at Smarsh: It's already happened.
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Two years ago, Smarsh quietly sold 60 percent of its business to a California company called Quest Software, which paid $56 million for it, according to Quest's financial filings. The deal came with an option to buy more of the company within five years for $26 million more -- and to buy the rest of Smarsh for a negotiated sum.
Stephen Marsh, Smarsh's CEO, said Quest was buying out a private equity investor that put money into Smarsh in 2007, then wanted to wind down its fund and close its investment. Quest made a good strategic partner, he said, and bought both that investor's stake and some other shares owned by him and by others.
Then, last year, computer-maker Dell bought Quest and inherited its stake in Smarsh.
Smarsh says it operates autonomously under Dell, and that Dell's software group sells Smarsh services to clients -- opening doors for the Portland company. But Dell also acquired the options to buy the rest of Smarsh.
Dell did not return a call seeking comment on its plans for Smarsh. Marsh said that talks are under way to map out his company's future.
"We're in a good place in that we do have Dell as a partner," he said. "What will happen is obviously to be determined, but there are a lot of positive discussions going on."
-- Mike Rogoway; twitter: @rogoway; phone: 503-294-7699