Francisco Partners and TPG Strike Deal to Buy Dell’s Cloud Business for $ 4 Billion

Dell, the multinational computer tech giant announced that it has struck a deal with TPG and Francisco Partners to sell its Boomi cloud business. Dell said that the $ 4 billion cash deal is expected to be completed by the end of 2021 without revealing any further details on the agreement.

The deal announced on Sunday values Dell’s cloud-based Boomi platform at around $ 4 billion including debt. 

SEE ALSO: Atlassian Introduces JiraWork Management, Opens its Jira Platform to all Business Teams

Dell Under Pressure to Improve Profitability

Dell has come under considerable pressure to improve its profitability particularly after the acquisition of EMC Corp in 2016 did not fulfill the set financial objectives.  

Further, Dell is also reportedly set to spin off its stakes in the cloud computing software company VMware, which is expected to make the company more agile. 

In 2020, Dell sold RSA, its cybersecurity unit to a private equity firm for approximately $ 2.08 billion. 

Looking at how Dell is going about its business, it is evident that it is trying to minimize dependence on hardware sales and aiming to become a subscription-based computer service seller. However, at present, Dell gets more than fifty percent of its revenue from selling personal computers to consumer and commercial customers. 

Currently, to accelerate its growth, Dell is heavily investing in modernizing its core infrastructure and PC businesses while simultaneously expanding in priority areas. 

More about Francisco Partners and TPG

The San Francisco-based company Francisco Partners primarily aims to partner with tech companies. Over the past couple of decades, it has made more than 300 investments and also manages over $ 25 billion in assets. 

TPG is a global company and manages more than $ 91 billion in assets. The Boomi investment is a part of the firm’s big buyout plan, which is known as TPG Capital. 

Boomi’s Future

Since 2010, Boomi has specialized in the integration of multiple cloud platforms for organizations. Dell acquired the company in 2010 for an undisclosed amount. 

According to Jeff Clarke, Chief Operating Officer, and Vice Chairman, Dell said that the new deal marks the beginning of the next growth period for Boomi. He also said that the deal is a good move for all the companies involved, their partners, and shared customers.

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Karandeep V

Karandeep was born in Pune, Maharashtra, an upcoming metropolitan city in the Western region of India. While most members of his family are engineers, he had different ideas. He was more inclined toward exploring the non-technical aspects of a business, which is why he studied Bachelors of Business Administration at Symbiosis International University, Pune.  Having said that, his love for new and upcoming technologies remained intact, which is why he has written extensively about technology throughout his career. After a brief stint with a gaming company at the beginning of his career, he discovered that his love for writing was not temporary.  Being a tech geek, he always liked installing and playing around with new applications on his mobile devices and the home desktop. He was fascinated by how technology can simplify even the most mundane and complex tasks with just a few commands. He keeps a close eye on how businesses use different tools to streamline their operations to boost productivity and efficiency.  At ToolsMetric, he writes product reviews that cover the main features and specifications of different enterprise applications. The sheer amount of innovation and hard work that goes into building these tech solutions is one of the reasons why Karandeep loves reviewing these tools. Besides product reviews, he also writes interesting news articles and blogs that track the latest developments in the tech industry.  When he is not writing, you can find him rooted to his seat playing video games, watching movies, or supporting his favorite football team. Since his childhood, he has always loved to travel and explore new places. Traveling is a major part of his life due to a myriad of reasons such as experiencing new cultures, food, and traditions. His other hobbies include playing football, cooking, and running.  You can find him on LinkedIn here.

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