Dell to sell off part of business to reduce EMC debt?

Buy, Hold, Sell Buttons

Dell is preparing to sell around $10bn in non-core assets, including software and services, to reduce the $49.5bn of debt it will have once the merger with EMC (NYSE:EMC) is completed, according to a report from Reuters.

The article says that according to people familiar with the matter, Dell has communicated the plan to credit rating agencies in recent days, the people said on Monday.

Assets up for sale could include Quest Software, SonicWall, AppAssure, as well as IT services provider Perot Systems, the sources are quoted as saying.

The divestitures will not include Dell's hardware assets such as servers, which are crucial in its quest to dominate the large enterprise market through its merger with EMC.

A Dell spokesman declined to comment.

Dell agreed last month to buy data storage company EMC for $67bn, and the transaction is expected to close between May and October 2016.

EMC acquisition: Is it a good deal for Dell?


ITPro is a global business technology website providing the latest news, analysis, and business insight for IT decision-makers. Whether it's cyber security, cloud computing, IT infrastructure, or business strategy, we aim to equip leaders with the data they need to make informed IT investments.

For regular updates delivered to your inbox and social feeds, be sure to sign up to our daily newsletter and follow on us LinkedIn and Twitter.