On Sunday, the computer giant Dell Technologies said private – equity firms Francisco Partners and TPG Capital have recently entered in a conclusive agreement to purchase its cloud business, Boomi, in a $4 billion total cash transaction.
Dell stated that the deal was expected to close by the end of 2021 but did not reveal any additional terms or information regarding the transaction. The Wall Street Journal is the one who reported about the deal for the first time.
The computer maker is under huge pressure to raise profitability after its debt-laden acquisitions of data storage provider EMC Corp for around $6 billion in 2016 failed to meet financial targets and was also affected by intensifying price competition.
The company also stated that it would spin off its majority stake in cloud computing software maker VMware. It would also trim down its business and make the firm nimber.
Bhoomi specializes in integrating different cloud platforms for companies and has more than 15,000 customers. The company agreed to acquire the firm for an undisclosed amount in 2010, a statement showed at the time.
The operating officer Jeff Clarke at Dell said the sale of Boomi was the right choice for both firms. Dell said it is focused on its core infrastructure and PC business with a focus on hybrid cloud, telecom, edge computing, and its APEX hardware-as-a-service effort.
Francisco Partners said Boomi will develop its tools to connect cloud data and workflows with better automation. Moreover, TPG and Francisco Partners will come together to boost Boomi’s growth as an independent firm.