The terms significantly reflect simplification to the corporate ownership structure of VMware and the independent Special Committee recommended an $11.5 Billion to $12.0 Billion special cash dividend which has been declared by the VMware Board to all VMware stockholders immediately prior to the spin-off and subject to the satisfaction of all closing conditions.
As stated by VMware, its vision is to create a ubiquitous software and SaaS platform across all clouds and hardware infrastructure that helps accelerate customers’ digital transformation. However, the company intends to maintain the strength of VMware and Dell strategic partnership to deliver joint customer value.
“We will have an enhanced ability to extend our ecosystem across all cloud vendors and on-premises infrastructure vendors and a capital structure that will support growth opportunities. Our strategic partnership with Dell Technologies remains a differentiator for us, and, as we execute on our multi-cloud strategy, we continue to provide customers our solutions and services on any public cloud and any infrastructure,” said Zane Rowe, chief financial officer and interim chief executive officer of VMware.
“By spinning off VMware, we expect to drive additional growth opportunities for Dell Technologies as well as VMware, and unlock significant value for stakeholders. Both companies will remain important partners, providing Dell Technologies with a differentiated advantage in how we bring solutions to customers. At the same time, Dell Technologies will continue to modernize its core infrastructure and PC businesses and embrace new opportunities through an open ecosystem to grow in hybrid and private cloud, edge and telecom,” said Michael Dell, chairman and chief executive officer of Dell Technologies.
The transaction which will result in two standalone companies is expected to close in Q4 2021, and upon completion of the spin-off, Michael Dell will remain chairman and chief executive officer of Dell Technologies, as well as chairman of the VMware board. Zane Rowe will also remain interim CEO of VMware, and the VMware board of directors will remain unchanged.