Dell Technologies has recently confirmed that it is in talks with cloud computing company, VMware, over a possible reverse-merger.
According to CNBC, Dell is mulling over its options regarding its future, one of which is a potentially ground-breaking tech deal as it considers becoming a public company via a reverse-merger with VMware.
Also being pondered by Dell is the possible decision to make “a public offering of Dell”, to make further acquisitions, or to buy the remaining available 20 percent stake of VMware.
The company has so far made no definitive statement regarding its plans, saying only that “nothing has been decided and alternatives are just being considered at this stage.”
VMware, a $60 billion (€48.9 billion) cloud computing company under the control of Dell, has experienced a 1 percent growth in shares following rumours of a potential deal, but has been similarly veiled in its public statements.
“Dell has been a tremendous partner since it became our majority owner and as we’ve accelerated our growth,” said VMware CEO Pat Gelsinger. “We look forward to Dell’s continued support as we work to execute our growth plans in the years ahead.”
If VMware did opt to buy Dell, the purchase would probably be “the biggest deal in tech industry history, giving investors who backed Dell’s move to go private in 2013 a way to monetise their deal, while helping Dell pay down some of its approximately $50 billion (€40.7 billion) debt.”
Dell’s board of directors will meet this month “to consider a slew of options, many of which are still in the early stages of examination, including the reverse merger.”
