Dell has sold its Software Group to Francisco Partners and Elliot Management for a sum of $2 billion. The transaction includes Dell’s systems and Information Management(SIM), Security and Advanced Analytics business Units. Dell will still remain as a significant reseller and partner of the said business. But the newly acquired company will function more as an independent company and until the transaction gets completed no changes will be observed to the way business is being operated.
Francisco Partners and Elliott Management have a long history of driving innovation and growth of its portfolio companies. Dell Software Group will try to reinvent itself under new leadership in a business environment that’s rapidly changing thanks to cloud computing and mobile computing.
In the year 2013, Dell went private to give itself the freedom to make radical changes to its business model, including going big on software. But then again, on recommend of some of its board of directors, it made a very tall leap to acquire EMC for a record breaking $67 billion last year. To gather the funds required to complete the deal, Dell appears to be going all-in on hardware and so is selling its software business.
Hope, this deal helps Dell fulfill its dream to acquire EMC by this year end.