Dell, which is sincerely trying its best to ease of some of the debt burden gained from the purchase of EMC has decided to sell the latter’s business unit Documentum. According to Bloomberg, Documentum was bought by EMC in 2003 for $1.7 billion. Now, Dell wants to sell the company for $2 billion in order to bring down the purchase debt to $65 billion.
Going deep into the details, CEO Michael Dell took his company in private in 2013 for $25 billion buyout. In October 2015, the tech vendor was buying EMC to accelerate its transformation into a complete enterprise IT solutions and services provider. As per the deal, Dell will also get EMC’s business units like VMware, VCE, Pivotal, RSA and VirtuStream under its winds as soon as the deal gets complete. For this to happen, it has to pay $67 billion to EMC.
Dell in recent years has spent billions of dollars to buy companies to give it greater capabilities in business fields such as storage, networking, security software and cloud.
As soon as it went private, industry observers are finding it hard to gauge Dell Finances, as the company doesn’t need to report quarterly earnings.
In February 2016, Dell officials disclosed that after two years since going private, the company has seen declining revenues and losses, including a 6 percent drop in net revenue in the most recent fiscal year. And that was due to lower sales in the PC, services and software business.
In March 2016, Dell gained the permission of US Federal Trade Commission and EU Commission and also the approval of all EMC Board. So, the tech giant is almost the new master of EMC from now on.
In order to reduce the debt burden of purchase, Dell has planned to sell EMC’s Documentum for $2 billion.
In order to gather funds for the purchase, Dell has announced that it will sell off its Services group for $3.05 billion to a Japan company called NTT Group. The company is also looking for prospects to sell Quest Software Business and SonicWall Network Security Unit for $4 billion.
More details will be updated shortly!