Dell is working hard to slim down its business operations and pay off debt. According to the latest rumours, the company is investigating the possibilities of divesting Boomi. Dell bought the cloud integration company in 2010.
The original Bloomberg article does not give much explanation as to why Dell would want to divest the business. The company wants to get its balance sheet in order and therefore wants to divest several businesses. In the long term, according to Bloomberg, the company wants to become less dependent on direct hardware sales and focus more on subscription-based computing services.
Discussions in early stages
The sale of Boomi would generate 3 billion dollars, according to Bloomberg’s sources. That is about 2.5 billion euros. The discussions are said to still be in the early stages and nothing is certain yet. The business could end up with private equity firms or other companies looking to expand their cloud-related offerings.
Boomi sells low-code iPaaS services, which allow customers to integrate different application platforms. The company was founded in 2000 but has been owned by Dell since 2010. It is not known how much Dell paid for the acquisition at that time.
Trimming down the fat
Dell is busy trimming itself down. The company has become very unwieldy over the years, with a lot of business sectors that had less and less to do with each other. This has resulted in Dell being valued lower on the stock market than the company considers itself worth.
The rumours come shortly after the announcement that Dell will spin off its VMware business. The company expected that this would make both parties more flexible. The 8 billion euros that the demerger is expected to bring Dell will be used to pay off debts. Presumably, the amount from the potential sale of Boomi will also go towards the same cause. Last year, Dell sold its cybersecurity division RSA Security for just under two billion euros.
Bloomberg asked Dell for a response, but the company declined to comment.