Following reports that Dell Technologies is evaluating a reverse merger with VMware, the latter company’s CEO Pat Gelsinger on Friday commented on the evolving situation.
“We are not in a position to speculate on the outcome of Dell’s evaluation of potential business opportunities. Dell has been a tremendous partner since it became our majority owner and as we’ve accelerated our growth. We look forward to Dell’s continued support as we work to execute our growth plans in the years ahead. The VMware management team remains laser-focused on serving our customers and partners with the best portfolio of software products and services across cloud, mobile, networking and security.”
In 2015 Dell spent $67 billion to acquire EMC, the largest tech merger in history, which came with an 80% ownership stake in VMware. Earlier this week CNBC reported that a reverse merger wherein VMware purchases Dell, could help Dell pay off approximately $50 billion in debt leftover from the EMC merger.
Paul Sagan, Lead Director, VMware Board of Directors, said, “The VMware Board of Directors is committed to creating value for, and protecting the interests of, all stockholders. The Board of Directors follows sound corporate governance practices, and will continue to do so in connection with any potential transaction involving our controlling stockholders. We are fortunate to have on the Board experienced independent directors who will continue to act in the best interests of all VMware stockholders.”
Dell’s board of directors plans to meet later this month to discuss options, including the reverse merger as well as an initial public offering (IPO), according to sources familiar with the matter, Bloomberg reported. Another possible option would be to purchase the rest of VMware.
