Dell Technologies (NYSE: DELL) has agreed to sell its integration platform-as-a-service business Boomi to investment firms Francisco Partners and TPG Capital for approximately $4 billion in cash.
Jeff Clarke, vice chairman and chief operating officer of Dell, said in a statement published Sunday the proposed sale comes as the company decides to focus on modernizing core infrastructure and personal computer businesses as part of its growth initiatives.
He added that Dell will also put emphasis on expanding in hybrid and private cloud, telecommunication and other high priority areas.
Meanwhile, Dipanjan Deb, co-founder and CEO; and Brian Decker, partner at Francisco Partners, said the firm has been monitoring Boomi’s growth. They expressed belief that the iPaaS company is capable of enabling companies to transform data into a valuable asset.
TPG Capital executive likewise commented on the Boomi technology.
“Boomi’s cloud-native platform enables enterprises to streamline business processes and is essential for driving digital transformation… We look forward to working with the teams at Boomi and Francisco Partners to accelerate the company’s growth as an independent entity,” said Nehal Raj, partner; and Art Heidrich, principal at TPG Capital.
Terms of the definitive agreement were not disclosed and Dell expects to complete the sale by the end of the year.
Dell’s financial advisers are Morgan Stanley & Co. and DBO Partners while its legal adviser is Skadden, Arps, Slate, Meagher & Flom. Francisco Partners and TPG Capital tapped Barclays, Citi and J.P. Morgan Securities to serve as financial advisers and Ropes & Gray, Paul Hastings and Kirkland & Ellis as legal advisers.
