Francisco Partners, a global investment firm that specializes in partnering with technology businesses, and TPG Capital, the private equity platform of global alternative asset firm TPG, have entered into an agreement with Dell Technologies to acquire Boomi, a cloud-based integration platform as a service (iPaaS) provider. The transaction has been valued at $4 billion and is expected to close by the end of 2021. Terms of the agreement were not disclosed.
Boomi has more than 15,000 customers across the globe. It helps organizations to connect applications, processes and people across a range of locations and devices. Their offerings include a low-code application and data integration platform, along with data quality, discovery and readiness capabilities.
"Boomi has flourished as part of Dell Technologies, growing exponentially since we acquired them in 2010. This proposed transaction positions Boomi for its next phase of growth and is the right move for both companies, our shared customers and partners,” said Jeff Clarke, vice chairman and chief operating officer of Dell Technologies in a press statement. “For us, we’re focused on fueling growth by continuing to modernize our core infrastructure and PC businesses and expanding in high-priority areas including hybrid and private cloud, edge, telecom and APEX. All designed to help organizations thrive in the do-from-anywhere economy.”
According to Nehal Raj, partner, and Art Heidrich, principal at TPG Capital, the current need for data integrations across apps and platforms has never been greater. “Boomi’s cloud-native platform enables enterprises to streamline business processes and is essential for driving digital transformation..,” he said in a statement.
Dipanjan Deb, co-founder and chief executive officer, and Brian Decker, partner, at Francisco Partners agreed sharing the following in the aforementioned press statement, “The ability to integrate and connect data and workflows across any combination of applications or domains is a critical business capability, and we strongly believe that Boomi is well positioned to help companies of all sizes turn data into their most valuable asset,” said Dipanjan Deb, co-founder and chief executive officer, and Brian Decker, partner, at Francisco Partners said in a statement.
Dell’s debt problems left over from its acquisition of EMC in 2016 are well known, and it seems to be moving this year to eliminate it in multi-billion dollar chunks. The first step was spinning out VMware as a separate company last month, a move expected to net close to $10 billion.
Boomi has recognizable parallels to Mulesoft, in that they both help companies with integration problems by creating connections between distinctive systems. While it appears to be a useful asset for Dell to help pull these pieces together and make them work, with so many pieces in place from various acquisitions over the years, eliminating its looming debt takes precedence.