Francisco Partners and Elliott Management Acquire Dell Software Group

Hedge fund group Elliot Management and buyout firm Francisco Partners have announced they’ve agreed to acquire Dell Software Group. In the joint June 20 announcement, the companies said they looked forward to enhancing their tech portfolios with Dell’s software in security, systems and information management, and data analytics.

According to Reuters, the deal was done for $2 billion, but the Wall Street Journal is reporting it was just $1.2 billion. None of the companies have disclosed any financial details.

“We’re proud to have built a robust portfolio of software solutions that help make the lives of customers easier,” said John Swainson, president, Dell Software. “We look forward to continuing that focus as part of the Francisco Partners and Elliott Management portfolio of companies.”

Unnamed sources, who asked not to be identified because negotiations were meant to be confidential, told Reuters that Dell agreed to the sale to recoup some of the $67 billion it spent last year when it bought data storage company EMC Corp., and they are looking to sell the majority of their software assets including Quest Software, which focuses on systems management, security and business intelligence, and SonicWall, Dell’s security product.

This is Dell’s second divestment this year. In March, Japan-based NTT Data Corp. agreed to buy Dell’s IT consulting division Perot Systems for $3 billion.

The deal is subject to regulatory review but is expected to be finalized by the end of June.