Dell Technologies is selling Boomi, a provider of cloud-based integration platform as a service (iPaaS), to investment firm Francisco Partners, and private equity firm TPG, for $4 billion (R57 billion). This is part of a strategy by the company to shave off its debt problem created when they bought EMC in 2015.
In April, Dell announced plans to spin off its 81% equity ownership of VMware, forming two standalone public companies. The tech firm acquired VMware as part of the $67 billion (R963 billion) EMC acquisition in 2015.
Under terms of the planned spin-off, VMware will distribute a special cash dividend of $11.5 – $12 billion (R172 billion) to all its shareholders and those of VMware.
Now Dell is offloading Boomi.
“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,” said Jeff Clarke, vice chairman and chief operating officer of Dell Technologies.
“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.”
Boomi is trusted by more than 15,000 customers globally to discover, manage and orchestrate data. As the pioneer of fueling intelligent use of data, Boomi makes it quick and easy for organizations to connect applications, processes and people across a range of locations and devices – completing projects in weeks, not months.
With the company’s low-code application and data integration platform, and data quality, discovery and readiness capabilities, customers can create integrated experiences and instantly connect people to what they want – making it faster and easier to unify data, systems, applications, processes, people, enterprises and organizations globally.
“I am incredibly proud that through innovation, passion and relentless execution, the Boomi team has created a unified platform for the modern-day hybrid IT landscape that thousands of customers worldwide depend on to digitally transform their business,” said Chris McNabb, chief executive officer of Boomi.
“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.”