Dell sells Boomi for US$4 billion
After a decade or so of expanding its portfolio of offerings, Dell continues to reverse the trend with the sale of Boomi, its integration platform as a service (iPaaS), for US$4 billion.
Dell bought Boomi in 2010 and at the time said, "Today's announcement represents another step by Dell to build a technology portfolio for growing businesses seeking the benefits of web-based computing while addressing one of the top barriers to cloud adoption - managing and integrating cloud-based applications with existing applications and databases." Now however, with a mounting debt problem to consider, Dell is parcelling off parts of its business and moving on.
In 2020 Dell sold its cyber-security arm RSA to a private equity company for US$2 billion and just last month Dell announced it would spin off VMWare as a separate business line and that move is expected to net the company around US$10 billion - still a long way to go to recoup the cost of buying EMC in 2016 for an estimated US$67 billion.
Boomi's new owners are private equity players Francisco Partners and TPG Capital and Boomi's CEO Chris McNabb is upbeat about the deal.
"By partnering with two tier-one investment firms like Francisco Partners and TPG, we can accelerate our ability for our customers to use data to drive competitive advantage. In this next phase of growth, Boomi will be in a position of strength to further advance our innovation and market trajectory while delivering even more value to our customers," McNabb says in a written statement.
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