Dell Technologies could soon be a publicly listed company, following reports it is considering a number of financial options, including a reverse merger with cloud firm VMware.
The Texan computing firm, which is currently valued at around $62 billion, already owns 80% of $50bn VMware, and has not yet disclosed how a potential deal would be brokered. “Nothing has been decided and alternatives are just being considered at this stage,” the company told CNBC.
Soon after the news emerged Pat Gelsinger, CEO of VMware, wrote in a statement that his company was “not in a position to speculate” about Dell’s intentions. “Dell has been a tremendous partner since it became our majority owner and as we’ve accelerated our growth,” he added. “We look forward to Dell’s continued support as we work to execute our growth plans in the years ahead.”
VMware’s share price hopped 1% upon news of Dell’s potential deal. A reverse merger – in which VMware would buy its parent company – will allow Dell to bolster investments in VMware’s cloud and multi-cloud products, as competitors like Huawei, IBM, Oracle and others look past VM to alternative enterprise cloud solutions.
Paul Sagan, lead director at VMware’s board, reiterated the Pal Alto company’s commitment to creating share value. “We are fortunate to have on the board experienced independent directors who will continue to act in the best interests of all VMware stockholders,” he wrote.