Dell set to spin off VMware into independent company, also selling Boomi cloud arm
The demerger is expected to complete later in the year
When you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
DellTechnologies has announced plans to spin off its majority stake invirtualizationgiantVMwareinto an independent company.
The demerger was first proposed in a filing in July 2020, and is finally expected to close in Q4 2021, subject to regulatory approval.
“By spinning off VMware, we expect to drive additional growth opportunities forDellTechnologies as well as VMware, and unlock significant value for stakeholders," company founder and CEO Michael Dell said in a statement.
Debt restructuring
Founded in 1984, Dell initially went public in 1988, before one of the largest leveraged buyouts ever seen put it back into the private ownership of Michael Dell in 2013. After buying EMC, the company undertook a complex financial move to become public again to help the company raise funds.
According to the release, post the VMware demerger, Michael Dell will stay on as chairman of VMware’s board, while Zane Rowe, the VMware CFO who became interim CEO following thedeparture of Pat Gelsingerto becomeIntelin January, will continue in the role while the company looks for a permanent replacement.
The breakup is reportedly the latest in a series of moves by the tech giant to reduce its debt, most of which it inherited from its acquisition of data management firm EMC in 2016, which also brought along VMware. Dell’s 81% stake in VMware is valued at $52 billion.
For the same reasons, Dell is also reportedlycontemplating saleof itsplatform-as-a-service (PaaS)business Boomi. The company is said to be on the hunt for potential buyers for thecloud brokerplatform that’s said to be valued at up to $3 billion.
Are you a pro? Subscribe to our newsletter
Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed!
Via:ZDNet
With almost two decades of writing and reporting on Linux, Mayank Sharma would like everyone to think he’sTechRadar Pro’sexpert on the topic. Of course, he’s just as interested in other computing topics, particularly cybersecurity, cloud, containers, and coding.
This new malware utilizes a rare programming language to evade traditional detection methods
Google puts Nvidia on high alert as it showcases Trillium, its rival AI chip, while promising to bring H200 Tensor Core GPUs within days
Arcane season 2 confirms the hit series isn’t just one of the best Netflix shows ever made – it’s an animated legend that’ll stand the test of time
