Dell to sell iPaaS provider Boomi for $4 bn

Dell Technologies on Sunday said it is selling cloud-based integration platform as a service (iPaaS) provider Boomi to investment firm Francisco Partners and private equity firm TPG Capital in an all-cash deal of $4 billion.  

The deal is expected to close by the end of 2021, as per a statement.  

Dell said that it is focused on modernizing its core infrastructure and personal computer businesses, and expanding in high-priority areas including hybrid and private cloud, edge, telecom and APEX.  

To up its profits, separately, Dell is currently also preparing for a spin-off of VMware. 

Chesterbrook, Pennsylvania, headquartered Boomi was founded in 2007 in Berwyn, Pennsylvania.  

"Boomi has flourished as part of Dell Technologies, growing exponentially since we acquired them in 2010. This proposed transaction positions Boomi for its next phase of growth and is the right move for both companies, our shared customers and partners," Jeff Clarke, vice chairman and chief operating officer of Dell Technologies said.   

Apart from its unified cloud-based integration solution designed to centralize data, applications, and processes to break down data silos, Boomi also offers software services including governance, risk and compliance tools, cost reduction tools, tools to design, secure and scale APIs, workflow automation and app development with low-code development, data catalog and preparation, connector tools for the open-source community.  

“TPG has a long history of partnering with corporate leaders like Dell Technologies to carve out and grow dynamic technology businesses,” Nehal Raj, partner, and Art Heidrich, principal, at TPG Capital said in a joint statement.  

The statement added that Boomi is used by over 15,000 customers globally.  

Morgan Stanley & Co and DBO Partners acted as financial advisors, and Skadden, Arps, Slate, Meagher & Flom acted as legal advisor to Dell Technologies. Barclays, Citi and JP Morgan Securities acted as financial advisors to Francisco Partners and TPG Capital. Ropes & Gray, Paul Hastings and Kirkland & Ellis acted as legal advisors to Francisco Partners and TPG Capital.  

Twenty -year-old Francisco Partners has invested in more than 300 technology companies so far, and has over $25 billion in assets under management. TPG Capital is the private equity arm of TPG, a global alternative asset firm with over $91 billion of assets under management.