Dell Technologies has announced the planned spin-off of its 81% stake in VMware. The deal is expected to close this year.
The companies will enter into a trade agreement to jointly develop critical solutions and align sales and marketing activities. VMware will continue to use Dell Financial Services.
Long pending sellerst
Dell acquired VMware in 2015 as part of the EMC acquisition for $ 58 billion (previously EMC owned VMware).
The news that Dell has outsourced VMware came as no great surprise. Dell had confirmed this in 2020 as well. Over time, VMware has become a de facto virtualization platform that overshadowed Dell. Compared to the previous year, VMware’s business grew 22 percent in 2020 (as of June 2020). Given VMware’s market position, experts believe Dell’s decision could not have come at a better time.
VMware will pay a cash dividend of $ 11.5 billion to $ 12 billion to all VMware shareholders …