Dell Technologies (NYSE: DELL) has finished spinning off 81 percent of its equity ownership interest in VMware in a transaction aimed at establishing two independent companies that will continue to co-develop critical platforms under a commercial agreement.
Michael Dell, chairman and CEO of Dell Technologies, said in a statement published Monday the deal’s completion marks a key milestone for Dell and VMware and creates value for stakeholders while keeping the partnership between the two companies in sales, support and innovation for clients.
“We are full speed ahead, solving customer problems, driving progress and capturing opportunities in areas like multi-cloud, edge and telecom,” added Michael Dell, who will keep his positions at Dell and continue to sit on VMware’s board as chairman.
VMware will continue to help its clients fund their digital transformation efforts using Dell Financial Services.
VMware doled out a special cash dividend of $11.5 billion to all its shareholders, including Dell Technologies. Share distribution was made to all Dell shareholders of record as of 5 p.m. Eastern time on Oct. 29. Each share of VMware Class B common stock was converted into a share of VMware Class A common stock in line with the distribution and prior to the receipt of such shares by Dell stockholders.
Dell Technologies secured $9.3 billion through the transaction and will pay down debt using the funds.
Dell Technologies announced the planned VMware spinoff in April. The former acquired a majority stake in VMware in 2016 after Dell and EMC closed their $67 billion cash-and-stock merger.
