American computer technology giant, Dell Technologies is set to sell its cloud business, Boomi, in a $4 billion cash transaction. The technology company has confirmed that private equity firms Francisco Partners and TPG Capital have entered a definitive agreement to buy the company’s cloud business.
“The deal is expected to close by the end of this year,” the company said. Dell Technologies has, however, not disclosed any additional terms of the transaction.
In recent times the computer manufacturer has been under pressure to boost profitability after its debt-laden acquisition of data storage provider EMC Corp for $67 billion in 2016 failed to meet financial targets, hurt by intensifying price competition.
The company has said that it would spin off its majority stake in virtual cloud computing software maker VMware, which would trim down its business and make the firm nimbler.