In a press release on Monday, 20th June 2016, Francisco Partners and Elliot Management announced that they will be acquiring Dell Software Group. The deal will still be subjected to customary regulatory review.
In their own separate email notification to customers, Dell cited the need to create a software specific business as an independent company as the best option to accelerate the growth of their business units, and to server their employees, customers and partners, better.
Click below for the press release from Francisco Partners.
Francisco Partners and Elliott Management to Acquire the Dell Software Group
June 20, 2016 08:00 AM Eastern Daylight Time
SAN FRANCISCO & ROUND ROCK, Texas–(BUSINESS WIRE)–Francisco Partners, a leading technology-focused private equity firm, Elliott Management Corporation, and Dell today announced they have signed a definitive agreement for Francisco Partners and Elliott to acquire the Dell Software Group. The agreement bolsters Francisco Partners and Elliott Management’s technology portfolios with the addition of Dell Software’s diverse combination of security, systems and information management, and data analytics solutions.
|“Quest Software and SonicWALL provide mission-critical software to a large and loyal base of over 180,000 customers, and we see significant opportunity to build upon the company’s impressive technology and product portfolio.”||“We founded our firm in 1999 to pursue divisional carve outs in the technology sector and today’s agreement continues that vision,” said Dipanjan “DJ” Deb, Francisco Partners’ Chief Executive Officer. “Quest Software and SonicWALL provide mission-critical software to a large and loyal base of over 180,000 customers, and we see significant opportunity to build upon the company’s impressive technology and product portfolio. We are excited to be partnering with Elliott Management and want to thank Silver Lake Partners and Dell for their continued partnership.”
“Elliott has been a long-term investor in the technology space and today’s announcement continues our progress,” said Jesse Cohn, Senior Portfolio Manager at Elliott Management. “This acquisition represents a significant deal by Evergreen Coast Capital, Elliott’s recently established Menlo Park affiliate. We look forward to working with Francisco Partners to create significant value at these companies.”
“Francisco Partners and Elliott Management’s deep passion for technology and proven track records in nurturing and building software businesses will enable Dell Software’s loyal base of employees to continue delivering innovation,” said Tom Sweet, senior vice president and chief financial officer, Dell. “We look forward to continuing to work closely with the Francisco Partners and Elliott Management teams to further enhance the already great relationships Dell Software has with its customers and partners.”
Dell Software’s comprehensive portfolio of solutions span a number of areas critical to the modern 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. With Dell Software solutions, organizations of all sizes can better secure, manage, monitor, protect, and analyze information and infrastructure in order to help fuel innovation and drive their businesses forward.
“We see tremendous growth opportunity for these businesses,” said Brian Decker, head of security investing at Francisco Partners. “Network security and identity and access management are increasingly strategic imperatives for enterprises and we are thrilled to support the continued product innovation of Quest Software and SonicWALL in these areas.”
“We are proud to partner with Francisco Partners to acquire Dell Software from Dell Inc.,” said Isaac Kim, Managing Director of Evergreen Coast Capital. “Dell Software has world class products and talented employees, and we look forward to working with the management team to grow revenues and increase value. We believe these companies offer unique value and operational potential.”
“We’re proud to have built a robust portfolio of software solutions that help make the lives of customers easier,” said John Swainson, president, Dell Software. “Whether they’re managing applications and data, securing their networks, protecting critical information, or deriving key insights from data, customers across the globe have come to rely on Dell Software for top-flight products, service and support. We look forward to continuing that focus as part of the Francisco Partners and Elliott Management portfolio of companies.”
Francisco Partners’ Chief Investment Officer David Golob added, “We have a long and successful track record executing divisional carve-out transactions and we look forward to working with the management teams at these businesses to create additional value for the company, its customers, and its partners as an independent entity.”
Debt financing for this transaction was provided by Credit Suisse and RBC Capital Markets. Barclays and Citigroup acted as lead financial advisors and Shearman & Sterling, Kirkland & Ellis, and Gibson Dunn as legal advisors to Francisco Partners and Evergreen Coast Capital. Goldman, Sachs & Co. acted as exclusive financial advisor and Simpson, Thacher & Bartlett LLP acted as legal advisors to Dell Inc. The transaction is subject to customary regulatory review.
About Francisco Partners
Francisco Partners is a leading global private equity firm, which specializes in investments in technology and technology-enabled services businesses. Since its launch over 15 years ago, Francisco Partners has raised approximately $10 billion in capital and invested in more than 150 technology companies, making it one of the most active and longstanding investors in the technology industry. The firm invests in transaction values ranging from $50 million to over $2 billion, where the firm’s deep sectoral knowledge and operational expertise can help companies realize their full potential.
Elliott Management Corporation manages two multi-strategy hedge funds which combined have approximately $28 billion of assets under management. Its flagship fund, Elliott Associates, L.P., was founded in 1977 making it one of the oldest hedge funds under continuous management. The Elliott funds’ investors include pension plans, sovereign wealth funds, endowments, foundations, funds-of funds, high net worth individuals and families, and employees of the firm.
Dell Inc., a wholly owned subsidiary of Denali Holding, Inc., listens to customers and delivers worldwide innovative technology, business solutions and services that give them the power to do more. For more information, visit www.dell.com. For more information on Dell Software, visit software.dell.com.
Disclosure Regarding Forward-Looking Statements
This communication contains forward-looking statements, which reflect Dell Inc.’s current expectations. In some cases, you can identify these statements by such forward-looking words as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “should,” “will” and “would,” or similar expressions. Factors or risks that could cause our actual results to differ materially from the results we anticipate include, but are not limited to: (i) the failure to consummate or delay in consummating the proposed transaction; (ii) the risk that a condition to closing of the proposed transaction may not be satisfied; (iii) the risk that a regulatory approval that may be required for the proposed transaction is delayed, is not obtained, or is obtained subject to conditions that are not anticipated; and (iv) the effect of the announcement of the proposed transaction on Dell Inc.’s relationships with its customers, operating results and business generally. Dell Inc. undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law
Click below for the email notification from Dell.
On Monday (June 20th, 2016), Francisco Partners and Elliott Management announced they have signed a definitive agreement to acquire the Dell Software Group. This transaction includes Dell’s Systems and Information Management (SIM), Security, and Advanced Analytics business units.
Dell will remain a significant reseller and partner of our world class technologies, but at this time we feel that creating a software specific business as an independent company represents the best possible option to accelerate the growth of the business units and to serve our employees, customers and partners.
This represents a significant change for our business but one we are excited about. Francisco Partners and Elliott Management have a long history of driving innovation and growth of its portfolio companies. Our employees and network of partners will stay focused on the path of delivering value for customers through innovative systems and information management technologies.
- Customers are the life blood of our business. For decades, we’ve delivered award-winning and industry-leading products and support to more than 100,000 customers around the world. We are excited to build on this history of excellence.
- Our Systems and Information Management software business is focused on reducing the time customers spend on administration, so they can increase the time and resources spent on innovation. Today’s announcement provides the opportunity to increase that focus on the biggest opportunities you have today, including: cloud, security, big data and mobility.
- Our products and customer support are the pride of our group. We’re committed to supporting our customers through this transition from Dell to our new owners at Francisco Partners. Our roadmaps are stronger than ever and, throughout this year, customers will have the opportunity to take advantage of new releases in each of our major solution areas:
- Database Management
- Data Protection
- Endpoint Systems Management
- Microsoft Platform Management
- Performance Management
While it will take some time to close the transaction, we will be sure to communicate with you regularly to give updates on progress. Until the transaction is completed there are no changes to the way business is operated. Your contacts in the sales, services, and support group remain the same.
I look forward to continuing our relationship and sharing more details of this exciting news as it becomes available. As always, we remain committed to shared success, growth and innovation.
Please see the press release for more details, and contact your Account Manager with any questions you may have.
Dell Systems and Information Management