Dell (DELL) Agrees to Sell Cloud Unit Boomi to Francisco Partners and TPG for $4 Billion
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Dell (NYSE: DELL) has agreed to sell its cloud business Boomi to private-equity firms Francisco Partners and TPG.
The deal values Boomi at $4 billion, including debt. The tech giant acquired Boomi in 2010 but it decided to part ways now as the management continues to restructure the tech business. Recently, Dell agreed to spin off its 81% stake in VMware.
"Boomi pioneered the iPaaS category and we have tracked their growth for a number of years," said Dipanjan Deb, co-founder and chief executive officer, and Brian Decker, partner, at Francisco Partners. "The ability to integrate and connect data and workflows across any combination of applications or domains is a critical business capability, and we strongly believe that Boomi is well positioned to help companies of all sizes turn data into their most valuable asset."
The two private equity firms will continue to invest in Boomi, which operates in a rapidly-growing integration platform as a service (IPAS).
"The need for automation and data integration across applications has never been greater," said Nehal Raj, partner, and Art Heidrich, principal, at TPG Capital. "Boomi's cloud-native platform enables enterprises to streamline business processes and is essential for driving digital transformation. TPG has a long history of partnering with corporate leaders like Dell Technologies to carve out and grow dynamic technology businesses. We look forward to working with the teams at Boomi and Francisco Partners to accelerate the company's growth as an independent entity."
Dell has a market capitalization of about $75 billion.
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