As the closing date of its $67 billion acquisition of EMC approaches, Dell is selling off as many of its non-core assets as possible to help fund the deal.
The company has now confirmed previous rumours that it planned on selling off its software division to the private equity firms Francisco Partners and Elliott Management.
The terms of the deal have yet to have been made public but it is thought that it will earn Dell an additional $2 billion that can be put towards funding the EMC merger.
The company's CFO, Tom Sweet, reassured that Francisco Partners and Elliott Management were properly prepared to take over its software division, saying: “Francisco Partners and Elliott Management's deep passion for technology and proven track records in nurturing and building software businesses will enable Dell Software's loyal base of employees to continue delivering innovation.”
Dell's deal with the private equity firms will cover Quest Software and SonicWall in addition to unspecified advanced analytics, data protection, database management, endpoint systems management, identity and access management, Microsoft platform management, performance monitoring code and network security.
Francisco Partner's head of security, Brian Decker justified the purchase of Dell's software division, saying: “We see tremendous growth opportunity for these businesses. Network security and identity and access management are increasingly strategic imperatives for enterprises and we are thrilled to support the continued product innovation of Quest Software and SonicWall in these areas."
Even if this deal is able to earn Dell $2 billion, it is likely that the company will have to sell off a few more assets in the near future to help finance its purchase of EMC.
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