Dell Technologies (NYSE: DELL) plans to outsource its 81 percent stake in VMware (NYSE: VMW) to simplify capital structures, strengthen its position in technology infrastructure and customer markets, and to hybrid cloud, 5G, Edge and to expand other growth areas.
Dell Technologies announced on Wednesday that the spin-off will be completed through a tax-free transaction in the fourth quarter of 2021, subject to receipt of a private letter from the Internal Revenue Service and other customary closing conditions.
“With the spin-off of VMware, we anticipate additional growth opportunities for Dell Technologies and VMware and significant value for our stakeholders,” said Michael Dell, chairman and CEO of Dell Technologies. “At the same time, Dell Technologies will continue to modernize its core infrastructure and PC business and leverage new opportunities for growth in the hybrid and private cloud, edge and telecommunications sectors through an open ecosystem.”
Michael Dell …