Four years after going private, Dell is reportedly considering a reverse merger with VMware that would allow Dell to once again go public, according to multiple publications familiar with the news.
In 2015, Dell bought 80 percent of VMware when it acquired EMC for $67 billion — the largest deal to date within the tech industry, and one that has not quite delivered the results initially projected.
With talks of a reverse merger, Dell could sell itself to a company it already owns and go public in the process — without having to go through all that comes with an initial public offering.
According to reporting from CNBC, the sale could likely exceed the price tag of 2015’s EMC acquisition, though sources did not disclose Dell’s sale price. If true, the arrangement could become the tech industry's newest highest-valued deal on record.
A sale to VMware isn’t the only move Dell is weighing, but it might be the most aggressive.
Other reports, like Reuters, have indicated the company could potentially file for an IPO of its fast-growing cloud application platform, Pivotal Software Inc, which is valued at $5 billion to $7 billion. Other options include buying the remaining shares of VMware or filing for a traditional IPO.
The goal is to boost Dell’s cash flow while offsetting debt, which is now estimated to sit at above $50 billion, according to Reuters.
Michael Dell launched Dell in 1984 as a freshman in college. The company first went public in 1988 and raised $30 million while increasing market capitalization from $1,000 to $85 million. In 2013, the company went private for $24.4 billion, bankrolled by Silver Lake Partners, which now owns about 18 percent of Dell.
Dell remains the largest tech employer in the Austin area, with an estimated workforce of 13,000 employees.
