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Big Dell Deal?

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The Wall Street Journal is reporting that Dell is considering a range of strategic alternatives that could transform the maker of PCs and data-storage devices.

According to the story, the review, which is in a preliminary stage, Dell is expected to explore options including an IPO and a purchase of the rest of VMware, a publicly-traded cloud infrastructure company

Currently, VMware has a market value north of $50 billion.

If Dell pursued a public listing, writes the Journal, it would be one of the biggest IPOs in recent years, and could also provide the company with cash to invest in the business and pay down debt.

The backstory: Dell went private in a roughly $25 billion leveraged buyout in 2013 by Its founder, Michael Dell, and investment firm Silver Lake. In 2016, Dell bought EMC for $67 billion in the largest technology takeover ever.

Bloomberg is also now reporting this story, and indicated that the board is meeting later this month to discuss strategic options, including the IPO.

Raising cash could help the company further expand or pay off some of its debt, Bloomberg continues, noting that Dell currently has about $46 billion in debt.

Dell is also considering a public share sale for its Pivotal Software Inc. cloud-computing venture. Dell met with bankers last year to discuss that possibility and was told the company could fetch a valuation of $5 billion to $7 billion, said one of the people. Still, any Pivotal offering may wait until the company has converted more of its business into wider-margin software and subscriptions and away from less-profitable services businesses, the person said.
– via Bloomberg.com



Written by turbotodd

January 26, 2018 at 10:01 am

Posted in 2018, austin, dell, emc, wall street

Dell and Perot, Cole and Drogba

with 2 comments

Monday mornings are never dull.

I awakened this am, still stinging from the defeat of my Dallas Cowboys in their new $1B+ home (“the palace in Dallas,” some are calling it, which would work great, except the stadium’s actually located in Arlington) by the New York Giants on a last play field goal, only to discover that Dell has announced its intent acquire IT services firm Perot Systems in a deal worth an estimated $3.9B.

According to a press release on the Dell web site, “the acquisition will result in a compelling combination of two iconic information-technology brands. The expanded Dell will be even better positioned for immediate and long-term growth and efficiency driven by:

  • Providing a broader range of IT services and solutions and optimizing how they’re delivered;
  • Extending the reach of Perot Systems’ capabilities, including in the most dynamic customer segments, around the world; and,
  • Supplying leading Dell computer systems to even more Perot Systems customers.

The Wall Street Journal indicated the merged firm would have “$8B in services revenue” and would seek to “better position Dell among its more diversified rivals like HP.

Speaking of rivals, did anybody catch the Chelsea Blues 3-nil trouncing of the Tottenham Hotspurs (“Spurs”) yesterday morning (U.S. time) at Stamford Bridge?

I’m still convinced most Americans don’t know what they’re missing in not checking out more Premiere League soccer (read: futbol) action…I’m convinced it’s one of the best and most competitive sports leagues in the world…and with satellite and cable carrying so many of their games these days, it’s an excellent way to fill in the gaps in one’s sports calendars.

Anyhow, that first goal by Ashley Cole, in which Cole seemed to glide across the turf a few inches and head in a cross from Didier Drogba, was an absolute thing of beauty.

Of course, all this football talk is perhaps just me getting psyched up for next year’s World Cup in South Africa, fantasizing about being sent there to blog about how IBM can help build a smarter planet through World Cup soccer.

A man’s gotta have his dreams…including Michael Dell.

Written by turbotodd

September 21, 2009 at 1:59 pm

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