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Dell sells data services business Boomi for $4bn

Investment firms Francisco Partners and TPG Capital are acquiring Dell Technologies' integration platform as-a-service business Boomi for $4bn, as Dell continues to offload companies to reduce its debt after the mammoth EMC acquisition.

Only last month, Dell announced it was selling its controlling stake in VMware, that is expected to net a windfall well above $9bn.

The Boomi deal is expected to close by the end of 2021. Boomi says it has more than 15,000 customers globally, helping them to discover, manage and orchestrate data.

“Boomi has flourished as part of Dell Technologies, growing exponentially since we acquired it in 2010,” said Jeff Clarke, vice chairman and chief operating officer of Dell Technologies. “This proposed transaction positions Boomi for its next phase of growth and is the right move for both companies, our shared customers and partners.”

“Boomi pioneered the iPaaS category and we have tracked their growth for a number of years,” said Dipanjan Deb, co-founder and chief executive officer at Francisco Partners.

“The ability to integrate and connect data and workflows across any combination of applications or domains is a critical business capability, and we strongly believe that Boomi is well positioned to help companies of all sizes turn data into their most valuable asset,” said Deb.

Since closing the 2016 EMC deal, Dell has reduced its core debt from $48.8bn to $29.2bn, including meeting its $5.5bn pay-down target in its last financial year (ended 29 January 2021).