Menu
Dell Technologies has sold one major BU every three months in 2016

Dell Technologies has sold one major BU every three months in 2016

Tech giant sells ECD business (EMC's Documentum) after exiting Dell IT services and Dell Software earlier this year

Dell Technologies (earlier Dell) has sold three major business units (BUs) since its announcement last October to buy EMC in a $67 billion megadeal.

The tech giant went lean within a week of the Dell EMC merger announced on September 7, 2016: Dell EMC exited the ECD (Enterprise Content Division) business.

Also Read: OpenText to buy Dell EMC's enterprise content division

Dell also has sold two of its other key portfolio units - Dell IT Services Unit and Dell Software in 2016.

Interestingly, the announcement dates of these three business units by Dell Technologies show a similar pattern—there is a three-month gap between each sale.

The sale of Dell IT Services Unit was announced in March 2016 and the Software Business exit was made public in June this year. And now, after three months, Dell EMC's ECD division deal was announced on September 12.

As per industry analysts and technology experts, Dell Technologies was expected to spin off or sell off non-core products from its super-wide portfolio.

Must Read: Dell Technologies is decades ahead of competition: Michael Dell

The first announcement of selling ECD—after the formal Dell EMC deal and formation of Dell Technologies—points in that direction.

The three sales of BUs in 2016 have fetched Dell Technologies approximately $6.62 billion.

Will Dell Technologies sell yet another business unit after a three month gap?

Here’s a look at what Dell Technologies has sold since its announcement to buy EMC last October:

1. Dell IT services

Brands: Formerly Perot Systems

Buyer: NTT Data

Announced: March 2016

Deal Size: $3.05 billion

History: Dell Services became part of the company as a result of a $3.9 billion acquisition of IT services company Perot Systems in 2009.

NTT Data, the IT services subsidiary of Japan-based Nippon Telegraph & Telephone, has entered into an agreement to acquire Dell’s IT services business. NTT is paying over $3 billion for Dell Services, a profitable operation as per the announcement made in March this year.

2. Dell Software

Brands: Quest, SonicWall and Statistica

Buyer: Elliot Management and Francisco Partners

Announced: June 2016

Deal Size: Approximately $2 billion

History: Four years after buying Quest Software for $2.36 billion, and SonicWall for $1.2 billion, the sell-off was in the direction to Dell’s acquisition of EMC.

Dell confirmed sale of its software division, including Quest Software and SonicWALL, this June. The technology-focused private equity firm Francisco Partners and Elliott Management Corporation signed a definitive agreement to acquire Dell Software Group for approximately $2 billion.

3. Dell EMC's enterprise content division

Brands: Documentum

Buyer: OpenText

When: September 2016

Deal Size: $1.62 billion

History: EMC acquired Documentum in 2003 for $1.7 billion. It was a key pillar of EMC's enterprise content division.

Canadian enterprise information management vendor OpenText agreed to buy Dell Technologies' EMC enterprise content division for $1.62 billion in a deal that, the companies say, will allow it to focus on core missions. The deal brings EMC's Documentum, InfoArchive, and LEAP product families to OpenText.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Brand Post

Featured

Slideshows

Reseller News Platinum Club celebrates leading partners in 2019

Reseller News Platinum Club celebrates leading partners in 2019

The leading players of the New Zealand channel came together to celebrate a year of achievement at the annual Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months.

Reseller News Platinum Club celebrates leading partners in 2019
Reseller News hosts alumnae breakfast for Women in ICT Awards

Reseller News hosts alumnae breakfast for Women in ICT Awards

Reseller News hosted its second annual alumnae breakfast for the Women in ICT Awards in New Zealand, designed to showcase the leading female leaders in the industry. Held at The Cordis in Auckland, attendees came together to hear inspiring keynotes and panel discussions, alongside high-level networking among peers. Photos by Gino Demeer.

Reseller News hosts alumnae breakfast for Women in ICT Awards
Reseller News Innovation Awards 2019: meet the winners

Reseller News Innovation Awards 2019: meet the winners

Reseller News honoured the standout players of the New Zealand channel in front of more than 480 technology leaders in Auckland on 23 October, recognising the achievements of top partners, emerging entrants and innovative start-ups.

Reseller News Innovation Awards 2019: meet the winners
Show Comments