By Chavi Mehta

Nov 29 (Reuters) - Clearlake Capital Group said on Monday it would buy Quest Software from Francisco Partners, as the investment firm seeks to tap into the pandemic-spurred surge in demand for enterprise software and cybersecurity tools.

The deal values Quest at $5.4 billion, including debt, a source familiar with the matter told Reuters.

Quest, which counts companies like Microsoft Corp MSFT.O , Ford Motor Co F.N and Merck & Co MRK.N as its customers, provides solutions spanning from database management to data protection to IT departments.

Clearlake expects the deal to close in the first quarter of 2022, saying it would hold a majority stake in Quest and its chief executive, Patrick Nichols, will continue to lead the company.

The private equity firm, with about $43 billion in assets under management, has been ramping up investments in the software sector as remote working trends gain momentum during the pandemic.

In August, Clearlake said it would take management software provider Cornerstone OnDemand private for about $3.8 billion.

The announcement also comes just weeks after a consortium led by U.S. private equity firm Advent International agreed to take cyber security firm McAfee Corp MCFE.O private in a $14 billion deal.

The Wall Street Journal first reported Clearlake's deal with Quest on Sunday.

(Reporting by Chavi Mehta in Bengaluru; Editing by Ramakrishnan M.)