First VMware, Now Dell Might Offload Boomi Cloud Business

Could Dell Technologies’ next move be selling its Boomi cloud business for $3 billion?

This week, Dell said it’s spinning off its VMware ownership in a move that came as no surprise. Dell began exploring selling its stake in VMware as far back as last summer.

Amid that news came reports that Dell is exploring options, including a potential sale of cloud business Boomi. Bloomberg broke the news, citing people familiar with the matter.

Boomi provides cloud-based integration platform as a service (iPaaS).

Dell is working with a financial adviser on a divestiture of Boomi, which could be valued at up to $3 billion, the people said. It’s said to be Dell CEO Michael Dell’s latest move to trim down his company.

Discussions are at an early stage, the people said.

When contacted, Dell said it’s “our policy not to comment on rumors or speculation.”

Dell acquired Boomi in 2010. The deal preceded VMware becoming part of Dell five years ago when Dell acquired VMware’s parent company, EMC, for $67 billion. It was the largest deal in tech history.

Last year, Dell sold its RSA cybersecurity business to a consortium led by Symphony Technology Group (STG), Ontario Teachers’ Pension Plan Board and AlpInvest Partners, for more than $2 billion in cash.

Last month, Appficiency, a provider of IT consulting services for Oracle NetSuite in North America, announced a partnership with Boomi. The new partnership will help Appficiency meet demand for cloud enterprise resource planning (ERP) across North America, as well as assist customers that need integrations.