Francisco Partners and Elliott Management to buy Dell Software Group
Dell agrees to offload software business in a deal reported to be worth more than $2bn
Dell will sell its software division to private equity firm Francisco Partners and the private equity arm of activist hedge fund Elliott Management, reportedly for more than $2bn.
The agreement was announced yesterday and would include almost all of Dell's software assets, including Quest Software and its SonicWall security business. The deal does not include Dell's Boomi cloud integration business.
Reuters has reported that the deal is worth more than $2bn.
The agreement bolsters Francisco Partners and Elliott Management's technology portfolios with the addition of Dell Software's diverse combination of security, systems and information management, and data analytics solutions.
"We founded our firm in 1999 to pursue divisional carve outs in the technology sector and this agreement continues that vision," said Dipanjan "DJ" Deb, Francisco Partners' CEO. "Quest Software and SonicWALL provide mission-critical software to a large and loyal base of over 180,000 customers, and we see significant opportunity to build upon the company's impressive technology and product portfolio. We are excited to be partnering with Elliott Management and want to thank Silver Lake Partners and Dell for their continued partnership."
"Elliott has been a long-term investor in the technology space and this announcement continues our progress," said Jesse Cohn, senior portfolio manager at Elliott Management.
"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," said Tom Sweet, senior vice president and CFO, Dell. "We look forward to continuing to work closely with the Francisco Partners and Elliott Management teams to further enhance the already great relationships Dell Software has with its customers and partners."
Dell Software's comprehensive portfolio of solutions span a number of areas critical to the modern business and IT management landscape, including advanced analytics, database management, data protection, endpoint systems management, identity and access management, Microsoft platform management, network security, and performance monitoring.
"We're proud to have built a robust portfolio of software solutions that help make the lives of customers easier," said John Swainson, president, Dell Software. "Whether they're managing applications and data, securing their networks, protecting critical information, or deriving key insights from data, customers across the globe have come to rely on Dell Software for top-flight products, service and support. We look forward to continuing that focus as part of the Francisco Partners and Elliott Management portfolio of companies."
It's still murky how the local Dell Software team will be impacted by the latest development.