Report: Dell considers spinning out companies
Jul 17, 2015, 2:43pm CDT
Dell Inc. is considering spinning off some of its divisions, but
any decision would be far off, a company board member said.
is reportedly considering spinning out fast-growing divisions to raise
their profiles, an investor and board member said.
The Round Rock company could combine
such divisions into separate companies to emulate other tech giants
EMC Corp. that have successfully
followed that strategy,
Silver Lake Partners Managing
Egon Durban said this week,
according to Fortune.
California-based Silver Lake Partners
formed an investors group with CEO
Michael Dell to complete a
$24.9 billion leveraged buyout of Dell
shareholders in late 2013. Spinning out Dell Inc.’s stronger divisions
would make sense, Durban said.
I think what (EMC CEO
Joe) Tucci has done with VMWare is a good example of that, where you
can take something that people don’t fully understand, buried in the
portfolio, and unlock it while still having a partnership with the
mothership,” he said.
Durban said SecureWorks, a cybersecurity
acquired by Dell in 2011 for $612
million, and Boomi, a cloud integration software platform
acquired in 2010 for an
undisclosed amount, would be likely candidates.
In response, Dell spokesman
David Frink issued a written
statement: "Dell is focused on delivering technology solutions that
work harder for our customers and helps them succeed. We have our
strongest-ever product and services portfolio and have acquired
significant new skills and capabilities over the past several years.
We won’t have additional comment on Mr. Durban’s remarks."