PC maker Dell Technologies has reached a deal to sell its cloud business, Boomi, to global investment firm Francisco Partners and private-equity platform TPG Capital.
“Boomi has flourished as part of Dell Technologies, growing exponentially since we acquired them in 2010. This proposed transaction positions Boomi for its next phase of growth and is the right move for both companies, our shared customers and partners,” Jeff Clarke, vice chairman and chief operating officer of Dell Technologies, said in a press release on Monday, May 3.
Clarke added that Dell’s growth strategy includes technology upgrades to “help organizations thrive in the do-from-anywhere economy.” The company is also planning to branch out to “high-priority areas including hybrid and private cloud, edge, telecom and APEX.”
Boomi is among the foremost providers of cloud-based integration Platform-as-a-Service (iPaaS). The cash transaction is valued at US$4 billion and is expected to close by the end of 2021.
Global investment firm Francisco Partners specializes in teaming up with technology and technology-enabled businesses. TPG is a global alternative asset firm managing in excess of US$91 billion of assets.
“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.”