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Jun 21, 2016 08:11 AM EDT

Dell Will Be Selling Two Software Groups To Elliott Management and Francisco Partners


Dell Incorporated will be selling its software group services to Francisco Partners and Elliott Management Corporation.

The Elliott Management Corp. and Francisco Partners was confirmed to buy Dell's software group for an undisclosed price. Both parties of the deal issued a joint press release to confirm the sales and acquisition, Wall Street Journal reported.

Rumors spread however that Elliott Management Corporation had made deals that includes SonicWALL, Quest Software, and some other pieces for over $2 billion. Both, parties, however would not confirm the rumored price, although the buyers (EMC and Francisco Partners) sees this deal as an opportunity, Techcrunch reported.

The software groups that are up on the deal provides services like database management, analytics, performance monitoring, access control, and data protection.

Dell, Inc. had been working on the finances for the acquisition of EMC which is $67 billion. They have sold, therefore, the company's information-technology-services group for $3.05 billion. Also, Dell has earned $20 billion from bonds.

The tech-security company SonicWALL was bought by Dell for $1.2 billion in 2012. In addition, Dell also bought Quest Software for $2. 36 billion.

Quest Software and SonicWALL has provided a good service to over 180,000 loyal customers. This provides a significant opportunity for the buyers to build impressive product portfolio and technology.

Also, Vista Equity Partners have already bought Marketo for $1.8 billion cash. The company also scooped Ping Identity for $600 million. Thoma Bravo equity firm also bought Qlik for $3 billion. Providence Strategic Growth invested $130 million to Logic Monitor.

Elliott Management made its name as an activist investor and counts not as a typical buyer but as a hedge fund. Elliott reportedly pressured EMC which was thought to have led to the Dell deal.

Elliot Management has been an investor in the technology space for a long time already and this announcement is a mark of continued progress, said Elliott Management senior portfolio manager Jesse Cohn.

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