Francisco Partners, TPG buy Dell's cloud business Boomi for $4 billion

FILE PHOTO: A Dell logo is pictured on the front of a computer in this photo illustration in the Manhattan borough of New York October 12, 2015. Computer maker Dell Inc said on Monday it had agreed to buy data storage company EMC Corp in a $67 billion record technology deal that will unite two mature companies and create an enterprise technology powerhouse. REUTERS/Carlo Allegri

(Reuters) -Computer maker Dell Technologies Inc on Sunday said private-equity firms Francisco Partners and TPG Capital have entered a definitive agreement to buy its cloud business, Boomi, in a $4 billion cash transaction.

The company said the deal was expected to close by the end of this year but did not disclose additional terms of the transaction.

The Wall Street Journal had reported here that Dell was nearing a deal to sell Boomi.

The PC maker is 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 this month said it would spin off its majority stake in cloud computing software maker VMware, which would trim down its business and make the firm nimbler.

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