Dell to Sell Software Assets for $2B – Report

Computing company is looking to raise funds after agreeing to spend $67 billion on a takeover of EMC last year.

Iain Morris, International Editor

June 20, 2016

1 Min Read
Dell to Sell Software Assets for $2B – Report

Dell is on the verge of selling its software division for more than $2 billion to investment groups Francisco Partners and Elliot Management Corp, according to sources cited by Reuters.

The deal will cover nearly all of Dell Technologies (Nasdaq: DELL)'s software assets, according to a Reuters report, including information technology management business Quest Software Inc. and data security provider SonicWall Inc. (Nasdaq: SNWL).

Dell is apparently looking to improve its balance-sheet position after agreeing last October to spend $67 billion on data storage company EMC Corp. (NYSE: EMC), which owns a controlling stake in cloud-computing company VMware Inc. (NYSE: VMW).

A deal to sell software assets -- which could be concluded as early as this week, according to the Reuters report -- would come weeks after Dell agreed to sell consulting business Perot Systems Corp. (NYSE: PER) to Japan's NTT Data Corp. for a fee of about $3 billion.

Dell has also been able to raise about $112 million from a public listing of SecureWorks Inc. , a cybersecurity unit, in April.

For more on Dell and EMC, see:

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About the Author(s)

Iain Morris

International Editor, Light Reading

Iain Morris joined Light Reading as News Editor at the start of 2015 -- and we mean, right at the start. His friends and family were still singing Auld Lang Syne as Iain started sourcing New Year's Eve UK mobile network congestion statistics. Prior to boosting Light Reading's UK-based editorial team numbers (he is based in London, south of the river), Iain was a successful freelance writer and editor who had been covering the telecoms sector for the past 15 years. His work has appeared in publications including The Economist (classy!) and The Observer, besides a variety of trade and business journals. He was previously the lead telecoms analyst for the Economist Intelligence Unit, and before that worked as a features editor at Telecommunications magazine. Iain started out in telecoms as an editor at consulting and market-research company Analysys (now Analysys Mason).

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