Dell sells Boomi to Francisco Partners and TPG Capital
[Chesterbrook, PA, Round Rock, Texas, San Francisco - May 2, 2021]
As of May 2nd, 2021, Dell Technologies has officially reached a deal to sell their software subsidiary, Dell Boomi, to global investment firm Francisco Partners and private-equity platform TPG Capital in a partnership worth $4 billion USD. The sale is expected to be finalized by the end of 2021.
Who is Boomi?
Originally founded in 2000 by Rick Nucci (current CEO and co-founder of Guru), Boomi started as an integration platform as a service (iPaaS), API management, Master Data Management and Data Preparation company. A Cloud integration leader, Boomi’s configuration-based integration technology allowed users to build processes through a visual interface and drag and drop technique. In fact, this interface is still present in the Boomi platform today. Seven years after launching, Boomi introduced AtomSphere in 2007, a Cloud integration managed through a browser-based User-Interface (UI). Boomi continued to independently lead the Cloud computing space until 2010, when Dell Technologies acquired Boomi.
Why did Dell buy Boomi?
In a bid to expand their cloud computing offerings at a time when web-based businesses were starting to kick off, Dell acquired Boomi in November 2010 for an undisclosed amount. Having acquired two other technology companies - Ocarina Networks and Exanet - that same year, it was no surprise that Dell was looking to develop their portfolio to better service growing businesses. The addition of Boomi to the Dell family was a vital opportunity for Dell Technologies to enhance their software resources as Boomi’s platform is ideal for businesses due to the lack of complex applications and easy cloud-based functionalities requiring little to no coding.
How does Dell Boomi compare with other middleware?
Best described as a highway connecting the core business processes of an organization, Dell Boomi’s AtomSphere, MDM, and API Management technology allows multiple third-party systems to automatically connect to each other, scrapping the need for manual data entry.
Dell Boomi’s ability to customize is crucial when it comes to middleware due to the obvious known fact that each business is different and requires unique solutions. Its API toolkit enables developers to easily develop and publish applications with less coding, compared to other software. Additionally, Dell Boomi’s grocery list of potential connectors allows companies to link to almost any legacy system or modern platform from Amazon to Salesforce to NetSuite and everything in between.
Serving over 15,000 customers world-wide, Dell Boomi has delivered an essential software service to multiple industries from healthcare to retail and beyond. In 2020, Dell Boomi was chosen by Moderna to serve as their middleware by unifying their systems to lead the global vaccine roll-out. To learn more about Dell Boomi and how it’s at the top of the middleware game, check out our website.
Who are Francisco Partners?
American private equity firm, Francisco Partners, was founded in 1999 in California by Sanford Robertson, Dipanjan Deb, David Stanton, Benjamin Ball, and Neil Garfinkel. Headquartered in San Francisco, Francisco Partners boasts two other offices in New York and London. Advertised as “Transformational Capital for technology companies”, Francisco Partners invests exclusively in technology and technology-enabled services businesses. It was therefore no surprise that CEO, Dipanjan Deb and firm partner, Brian Decker, would state the following as a reason for their investment: “The ability to integrate and connect data and workflows across any combination of applications or domains is a critical business capability, and we strongly believe that Boomi is well positioned to help companies of all sizes turn data into their most valuable asset.” (CMS Wire, May 4, 2021)
Who is TPG Capital?
Former colleagues, David Bonderman and Jim Coulter, founded TPG Capital (Texas Pacific Group) in 1992 in Mill Valley, California. Two years later, they moved their headquarters to San Francisco to be closer to the booming technology hub. This private equity firm focuses on leverage buyouts and growth capital with investments ranging in a variety of industries, including, technology, healthcare, and travel. With over $91 billion USD in assets and 12 offices across the globe, TPG Capital is a leading investment firm with a history of leveraging business growth opportunities.
The future of Boomi
As the Cloud computing revolution continues to grow at a rapid pace, Boomi is moving in the right direction as they look to expand on their business and grow as an independent entity. With investments from both TPG Capital and Francisco Partners, Boomi can continue modernizing their iPaaS infrastructure and transform their services and products, while targeting up and coming businesses looking to move away from legacy technology and focus more on automation.
During this transition, Boomi will continue to serve their 15,000+ clients under their brand name.
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