NEW YORK: In order to reportedly finance its $67 billion acquisition of IT storage company EMC, US tech giant Dell has sold Dell Software Group to Francisco Partners, a US-based private equity firm and Elliott Management, an American hedge fund management firm.
The transaction includes Dell's Systems and Information Management (SIM), Security, and Advanced Analytics business units. The price of the deal was not disclosed yet.
"Elliott has been a long-term investor in the technology space and today's announcement continues our progress," said Jesse Cohn, Senior Portfolio Manager, Elliott Management, in a statement.
In 2012, Dell bought tech-security company SonicWall Inc. for $1.2 billion and business-software maker Quest Software Inc. for $2.36 billion. Both are included in the deal, Wall Street Journal reported.
"This represents a significant change for our business but one we are excited about. Our employees and network of partners will stay focused on the path of delivering value for customers through innovative systems and information management technologies," said Tom Joyce, General Manager, Dell Systems and Information Management, in a statement.
The software group provides services to corporations such as analytics, database management, data protection, access control and performance monitoring.
Dell announced in October a merger with EMC - the top multinational in computer storage and cloud computing. The $67 billion merger is the largest in tech history.
Dell, with a turnover of around $58 billion and a profit level of around $3.2 billion would be absorbing $25 billion EMC, which made $5 billion profit. EMC has had subdued figures for last few quarters.