Dell Technologies is considering selling itself to VMware to become a public company again without having to launch an IPO, it confirmed in a public filing.
The move is one of three options under consideration and could represent the biggest tech deal of all time. It is also considering remaining a private company and laying the foundation for an IPO, according to the filing.
“Nothing has been decided and alternatives are just being considered at this stage,” said CEO Michael Dell in a statement published in the filing. “While this process continues, it is business as usual for team members, customers and partners with no changes to current structures, practices and processes. For my part, I remain completely committed to our mission and extremely excited about the opportunities ahead.”
Dell became a private company in 2013 after it launched a $24.2bn share purchase. But because it owns 80 per cent of virtualisation firm VMware, a public company, it was required to announce its plans.
Kate Hanaghan, chief research officer at TechMarketView, said in a statement it was clear Dell is not considering a trade sale: “It comes as no surprise that an IPO of Dell Technologies Common Stock is, however, one of the possibilities it is looking at. That would take Dell back into the public spotlight and help clear more of the debt it currently holds.
“The firm is also looking at a potential business combination with VMware. And the final possibility is that it just continues with the existing ownership structure.”