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(Reuters) – Dell Technologies announced Wednesday that it will spin off its 81% stake in cloud computing software maker VMware to create two separate public companies that will help the PC maker reduce its mountain of debt.

VMware is Dell’s top performing device right now as it has benefited from businesses looking to cut costs and move to the cloud. That shift was accelerated by the COVID-19 pandemic.

Dell’s shares rose more than 8% in expanded trading.

VMware will pay a special cash dividend of between $ 11.5 billion and $ 12 billion to all shareholders, including Dell, which will receive between $ 9.3 billion and $ 9.7 billion.

For Dell, the special dividend will help reduce long-term debt of $ 41.62 billion, much of which was acquired by VMWare for $ 67 billion during 2016’s acquisition of then majority owner EMC .

The companies said the deal …

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