Dell Technologies considering IPO, other options, to boost revenue, reports say 

Posted January 25th, 2018

Round Rock-based Dell Technologies Inc. is weighing different options to increase its revenue, including an initial public offering, according to media reports Thursday.

The company’s board, which is meeting later this month, will discuss whether an IPO is something they want to do, according to a Bloomberg article. Bloomberg cites “people familiar with the matter ... who asked not to be identified because the talks are private.”

In 2013, the California-based private equity firm Silver Lake Partners teamed with Michael Dell in his $25 billion deal to take Dell Inc. private.

Three years later, Dell merged with EMC Corp. The move increased Dell’s profile in the storage technologies industry -- the purchase gave Dell a large stake in  cloud computing firm VMWare -- but the $67 billion deal required Dell to take on a massive debt. Increasing cash flow could help the company pay off some of that debt, Bloomberg noted. 

Dell is considering other options besides going public. 

“Another option is to buy the rest of VMware that Dell does not already own, said one person familiar with the discussions,” the Bloomberg article says. “VMware shares have risen more than 60 percent in the past year. Dell is also considering a public share sale for its Pivotal Software Inc. cloud-computing venture.”