The sale will enable Dell to focus on expanding in high-priority areas such as hybrid and private cloud
Dell Technologies to divest Boomi for $4bn. (Credit: Jjpwiki/Wikipedia.org)
Dell Technologies has agreed to divest Boomi, a provider of cloud-based integration platform as a service (iPaaS), to a consortium of Francisco Partners and TPG Capital for $4bn in an all-cash deal.
Boomi was acquired by Dell Technologies in 2010 for an undisclosed price.
Dell Technologies vice chairman and chief operating officer Jeff Clarke said: “This proposed transaction positions Boomi for its next phase of growth and is the right move for both companies, our shared customers and partners.
“For us, we’re focused on fuelling growth by continuing to modernise 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 organisations thrive in the do-from-anywhere economy.”
Boomi’s iPaaS is said to enable organisations to connect applications, processes, and people quickly and easily across a variety of locations and devices.
The platform is said to be used by over 15,000 customers across the world for discovering, managing and orchestrating data.
Customers can create integrated experiences and connect people instantly to what they want with Boomi’s low-code application and data integration platform, and also data quality, discovery and readiness capabilities, said Dell Technologies.
TPG Capital partner Nehal Raj said: “The need for automation and data integration across applications has never been greater.
“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.”
Subject to customary closing conditions, the deal is anticipated to close by the end of this year.
Last month, Dell Technologies said that it had reached an agreement with cloud computing and virtualisation technology firm VMware on the terms for spinning off its stake of 80.6% in the latter.
Dell Technologies expects to gain around $9.3- $9.7bn in proceeds by spinning off the stake, which will be used for cutting down its debt.