Dell to Explore Sale of Boomi Cloud Business
(Bloomberg) -- Dell Technologies Inc. is exploring options including a potential sale of cloud business Boomi, according to people familiar with the matter, in the latest effort by Chief Executive Officer Michael Dell to trim down the personal computer maker.
Dell is working with a financial adviser on a divestiture of Boomi, which could be valued at up to $3 billion, the people said, asking not to identified because the matter is private.
Discussions are at an early stage and there is no guarantee Dell will end up selling the unit, the people said. Boomi could appeal to private equity firms or public companies looking to expand their cloud businesses, they added.
A representative for Dell declined to comment.
Boomi specializes in integrating different cloud platforms for companies. Dell agreed to acquire the company for an undisclosed amount in 2010, a statement showed at the time.
Dell has been cleaning up its balance sheet in recent years and hiving off a variety of businesses. The company announced plans Wednesday to spin off its stake in infrastructure software provider VMware Inc., its most valuable asset.
Last year, it sold cybersecurity unit RSA for $2.08 billion to a private equity firm.
The company is trying to reduce its dependence on hardware sales and transform into a seller of subscription-based computer services. While that shift is ongoing, the company still gets about half of its revenue from sales of personal computers to commercial and consumer customers.
Dell’s shares were little-changed Wednesday, closing at $92.70, giving the company a market value of about $71 billion. The stock has more than doubled in the past year.
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