Dell To Sell Software Division For Over $2 Billion

software

Dell Inc. and buyout firm, Francisco Partners are in advanced talks for the later to acquire Dell Inc’s software division for over $2 billion, according to Reuters.

Francisco Partners is the private equity arm of activist hedge fund Elliot Management Corp, and selling its software concerns will allow Dell focus more on its technology portfolio, and boost its revenue after agreeing in October to purchase data storage company EMC Corp for $67 billion.

The deal between Dell and buyers could be closed this week, according to Reuters, with a caveat that the negotiations could still end unsuccessfully.”

Dell is also reportedly trying to sell its other software assets, including SonicWall, an email encryption and data security provider, and Quest Software, which helps with information technology management.

Dell Inc. earlier sold Dell Services, formerly called Perot Systems, for $3 billion, even though the company had hoped to get at least $5 billion from that transaction.

In April, the company’s infosec subsidiary, SecureWorks, had an underwhelming IPO, selling for only $112 million, instead of the anticipated $160 million.

Dell’s parent company, Denali Holding Inc., reported in June that revenues were down to two percent, following an unremarkable Q1 of fiscal 2017.