Dell Sells Boomi Cloud Biz for $4B

Dell Technologies said it reached a $4 billion deal to sell Boomi, its cloud integration business, to Francisco Partners and TPG.

Boomi, which Dell acquired in 2010, developed a cloud-based platform that lets customers connect and transfer data and applications between on-premises data centers, clouds, and devices. It has more than 15,000 customers globally.

“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, in a statement. “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.”

Apex is the umbrella strategy for Dell’s as-a-service and cloud efforts. CEO Michael Dell announced Apex at last year’s Dell Technologies World event.

The company’s decision to sell Boomi comes less than a month after Dell and VMware announced a deal under which Dell will spin off its 81% stake in VMware. Under the terms of that agreement, VMware will pay a cash dividend between $11.5 billion and $12 billion to all VMware shareholders ranging from $27.43 to $28.62 per share, based on outstanding shares as of March 16. Dell Technologies will also receive a dividend of between $9.3 billion and $9.7 billion that the company will use to pay down its debt.

Dell will hold its annual Dell Technologies World event, albeit virtually, this week.