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 a definitive agreement with Dell Technologies to acquire Boomi, a leading provider of cloud-based integration platform as a service (iPaaS).
The cash transaction is valued at $4 billion and is expected to close by the end of 2021, subject to customary closing conditions. Terms of the agreement were not disclosed.
“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. “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.”
“Boomi pioneered the iPaaS category and we have tracked their growth for a number of years,” said Dipanjan Deb, co-founder and chief executive officer, and Brian Decker, partner, at Francisco Partners. “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.”
“The need for automation and data integration across applications has never been greater,” said Nehal Raj, partner, and Art Heidrich, principal, at TPG Capital. “Boomi’s cloud-native platform enables enterprises to streamline business processes and is essential for driving digital transformation. TPG has a long history of partnering with corporate leaders like Dell Technologies to carve out and grow dynamic technology businesses. We look forward to working with the teams at Boomi and Francisco Partners to accelerate the company’s growth as an independent entity.”
Boomi is trusted by more than 15,000 customers globally to discover, manage and orchestrate data. As the pioneer of fueling intelligent use of data, Boomi makes it quick and easy for organizations to connect applications, processes and people across a range of locations and devices – completing projects in weeks, not months.
“I am incredibly proud that through innovation, passion and relentless execution, the Boomi team has created a unified platform for the modern-day hybrid IT landscape that thousands of customers worldwide depend on to digitally transform their business,” said Chris McNabb, chief executive officer of Boomi. “By partnering with two tier-one investment firms like Francisco Partners and TPG, we can accelerate our ability for our customers to use data to drive competitive advantage. In this next phase of growth, Boomi will be in a position of strength to further advance our innovation and market trajectory while delivering even more value to our customers.”
Morgan Stanley & Co. LLC and DBO Partners LLC acted as financial advisors to Dell Technologies. Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor to Dell Technologies. Barclays, Citi and J.P. Morgan Securities LLC acted as financial advisors to Francisco Partners and TPG Capital. Ropes & Gray LLP, Paul Hastings LLP and Kirkland & Ellis acted as legal advisors to Francisco Partners and TPG Capital.
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