Dell Technologies is evolving itself once again with the US$4 billion sale of its cloud business Boomi to private equity firms in a move to shift its focus to “high-priority” areas including changing its sales motion toward as-a-service.
The news of Dell selling Boomi comes a few weeks after Dell confirmed the spin-off later this year of its majority stake in VMware and 15 months since Dell sold its cybersecurity business RSA for over US$2 billion to private equity firm STG Partners.
“For us, we’re focused on fueling growth by continuing to modernize our core infrastructure and PC businesses and expanding in high-priority areas including hybrid and private cloud, edge, telecom and Apex,” said Jeff Clarke, vice chairman and chief operating officer of Dell Technologies, in a statement. “[This is] all designed to help organizations thrive in the do-from-anywhere economy.”
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Dell offloads Boomi for $4B reseller.co.nz - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from reseller.co.nz Daily Mail and Mail on Sunday newspapers.
Francisco Partners and TPG to Acquire Boomi from Dell Technologies
Transaction will support Boomi s next phase of growth as iPaaS pioneer
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CHESTERBROOK, Pa., ROUND ROCK, Texas, and SAN FRANCISCO, May 2, 2021 /PRNewswire/ Francisco Partners, a leading global investment firm that specializes in partnering with technology businesses, and TPG Capital, the private equity platform of global alternative asset firm TPG, have entered into a definitive agreement with Dell Technologies (NYSE:DELL) to acquire Boomi, a leading provider of cloud-based integration platform as a service (iPaaS). The cash transaction is valued at $4 billion and is expected to close by the end of 2021, subject to customary closing conditions. Terms of the agreement were not disclosed.
Dell dumps another big asset moving Boomi to Francisco Partners and TPG for $4B
It’s widely known that Dell has a debt problem left over from its massive acquisition of EMC in 2016, and it seems to be moving this year to eliminate part of it in multi-billion chunks. The first step was spinning out VMware as a separate company last month, a move expected to net close to $10 billion.
The second, long expected, finally dropped last night when the company announced it was selling Boomi to a couple of private equity firms for $4 billion. Francisco Partners is joining forces with TPG to make the deal to buy the integration platform.