As was announced, the separation of VMware from Dell Technologies became final on November 1. Despite continuing independently, both companies intend to remain working closely together in various areas.
With the split, Dell shareholders received cash for their 81 percent stake in VMware, and VMware shareholders received cash for their shares in Dell Technologies.
The now-independent VMware has a value of over 55 billion euros ($64 billion). Dell Technologies will soon have a value of over 28 billion euros ($33 billion). The money that Dell Technologies receives as a shareholder of VMware will be used to pay off debts.
More freedom for VMware
VMware states that the split-off from Dell Technologies should provide more freedom in executing its multi-cloud strategy, give way to a simpler capital structure and result in more governance. Moreover, VMware notes that the event results in additional operational and financial capabilities.
‘Continued close collaboration’
Dell Technologies and VMware becoming two independent companies does not seem to put a full stop to their cooperation. Both companies intend to continue a strong relationship, working closely together on a technical and commercial level. The latter includes joint development of solutions and coordination in the areas of marketing and sales. VMware will also continue to leverage Dell Financial Services to help customers roll out their digital transition processes.
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