Last month Dell Technologies announced that it would be spinning off VMware in a move that is expected to net the company close to $10 billion. At the time it was unclear why the separation into its own operation was happening, but it appears as if the debt overhang from its 2016 acquisition of EMC is beginning to have an effect.
The latest business moving from out of the Dell Technologies umbrella is Boomi, which was recently sold to a pair of private equity firms – Francisco Partners and TPG – in a deal that is estimated at $4 billion.
For those unfamiliar with Boomi, the platform specialises in integration-as-a-service and data management among other things, having been acquired by Dell back in 2010.
“Boomi has flourished as part of Dell Technologies, growing exponentially since we acquired them in 2010. This proposed transaction positions Boomi for its next phase of growth and is the right move for both companies, our shared customers and partners,” noted Jeff Clarke, VC and CEO of Dell Technologies, in a press statement.
“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. All designed to help organizations thrive in the do-from-anywhere economy,” he added.
As for Boomi, following the announcement of the new acquisition, it looks like the company is aiming for things to remain as normal as it tries to keep growth and momentum going.
“By partnering with two tier-one investment firms like Francisco Partners and TPG, we can accelerate our ability for our customers to use data to drive competitive advantage. In this next phase of growth, Boomi will be in a position of strength to further advance our innovation and market trajectory while delivering even more value to our customers,” explained CEO Chris McNabb.
The deal is expected to be wrapped up later in the year, with regulatory checks and approvals still pending at the time of writing.
Whether Dell Technologies is willing to let go of other businesses, remains to be seen, but the aforementioned debt remains.