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Dell Software Acquisition Set to Close Late in Dell’s FY17

Following the recent signing of a definitive agreement for Francisco Partners, a private equity firm, and Elliott Management Corp., a hedge fund management firm, to acquire the Dell Software Group, the deal is now anticipated to close in the third or fourth quarter of Dell’s FY17 (which ends which ends February 3, 2017), subject to approval by customary closing conditions and regulatory review and approval, according to a Dell spokesperson.

The purchase price for Dell Software was not disclosed, although a New York Times DealBook column said it is estimated to be more than $2 billion.

As Dell Inc. moves to sell its software business, it is also in the process of acquiring EMC. The total transaction for EMC is valued at $67 billion, according to Dell, and is also subject to customary conditions. At the time the EMC deal was announced, in late 2015, the companies said it would likely close in the second or third quarter of Dell’s fiscal year (within the months of May to October 2016). 

The addition of Dell Software’s security, systems and information management, and data analytics solutions is expected to bolster Francisco Partners and Elliott Management’s technology portfolios.

Dell Software’s portfolio of solutions span a number of areas critical to the business and IT management landscape, including advanced analytics, database management, data protection, endpoint systems management, identity and access management, Microsoft platform management, network security, and performance monitoring.

Among Dell Software's key products are Toad, Boomi, KACE, SharePlex, SonicWALL, Spotlight, Statistica, Identity Manager, Change Auditor, and Migration Manager.

There is a “tremendous growth opportunity for these businesses," according to Brian Decker, head of security investing at Francisco Partners. He added that network security and identity and access management are increasingly strategic imperatives for enterprises and the company looks forward to continued product innovation of Quest Software and SonicWALL in these areas. 

Dell purchased Quest Software, a provider of IT management software, as well as SonicWALL, a provider of advanced network security, secure remote access, email security, backup and recovery, and management and reporting software, in 2012.

For more information, visit www.dell.com.

DBTA columnist Guy Harrison reflects on the Dell Software sale here.

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