Dell Technologies late Sunday disclosed a deal to sell its Boomi cloud integration software unit to the private-equity firms Francisco Partners and TPG Capital for $4 billion in cash. The deal is expected to close by the end of 2021.
Dell (ticker: DELL) recently has been taking steps to shore up its debt-heavy balance sheet, recently unveiling a plan to spin off its majority stake in VMware to Dell holders. In that transaction, VMware (VMW) will make a large cash payment to its shareholders, including Dell.
“Boomi has flourished as part of Dell Technologies, growing exponentially since we acquired them in 2010,” Dell vice chairman and chief operating officer Jeff Clarke said in a statement,. “This proposed transaction positions Boomi for its next phase of growth and is the right move for both companies, our shared customers and partners.”
Dell said in its latest 10k filing that Boomi “specializes in cloud-based integration, connecting information between existing on-premise and cloud-based applications to ensure business processes are optimized, data is accurate and workflow is reliable.” Dell doesn’t break out Boomi’s results in its financial disclosures.
On Friday, Dell shares were down 1.7%, to $98.33.
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