There has been so much speculation about this over the six months or so, with today seeing the Dell Software Group sold to help fund looming EMC deal.  Dell would need to raise funds to contribute towards the massive EMC purchase and the Dell Software Group (which includes SonicWALL and Quest) had always been thought of a a likely sell.  Four years after Dell’s purchase of both Quest and SonicWALL for a combined value of around $US3.5 billion, we see reuters suggesting the sale to be around $US2 billion.

The full press release is below:

June 20, 2016 08:00 AM Eastern Daylight Time

SAN FRANCISCO & ROUND ROCK, Texas–(BUSINESS WIRE)–Francisco Partners, a leading technology-focused private equity firm, Elliott Management Corporation, and Dell today announced they have signed a definitive agreement for Francisco Partners and Elliott to acquire the Dell Software Group. The agreement bolsters Francisco Partners and Elliott Management’s technology portfolios with the addition of Dell Software’s diverse combination of security, systems and information management, and data analytics solutions.

“Quest Software and SonicWALL provide mission-critical software to a large and loyal base of over 180,000 customers, and we see significant opportunity to build upon the company’s impressive technology and product portfolio.”

“We founded our firm in 1999 to pursue divisional carve outs in the technology sector and today’s agreement continues that vision,” said Dipanjan “DJ” Deb, Francisco Partners’ Chief Executive Officer. “Quest Software and SonicWALL provide mission-critical software to a large and loyal base of over 180,000 customers, and we see significant opportunity to build upon the company’s impressive technology and product portfolio. We are excited to be partnering with Elliott Management and want to thank Silver Lake Partners and Dell for their continued partnership.” “Elliott has been a long-term investor in the technology space and today’s announcement continues our progress,” said Jesse Cohn, Senior Portfolio Manager at Elliott Management. “This acquisition represents a significant deal by Evergreen Coast Capital, Elliott’s recently established Menlo Park affiliate. We look forward to working with Francisco Partners to create significant value at these companies.”

“Francisco Partners and Elliott Management’s deep passion for technology and proven track records in nurturing and building software businesses will enable Dell Software’s loyal base of employees to continue delivering innovation,” said Tom Sweet, senior vice president and chief financial officer, Dell. “We look forward to continuing to work closely with the Francisco Partners and Elliott Management teams to further enhance the already great relationships Dell Software has with its customers and partners.”

Dell Software’s comprehensive portfolio of solutions span a number of areas critical to the modern business and IT management landscape, including advanced analytics, database management, data protection, endpoint systems management, identity and access management, Microsoft platform management, network security, and performance monitoring. With Dell Software solutions, organizations of all sizes can better secure, manage, monitor, protect, and analyze information and infrastructure in order to help fuel innovation and drive their businesses forward.

“We see tremendous growth opportunity for these businesses,” said Brian Decker, head of security investing at Francisco Partners. “Network security and identity and access management are increasingly strategic imperatives for enterprises and we are thrilled to support the continued product innovation of Quest Software and SonicWALL in these areas.”

“We are proud to partner with Francisco Partners to acquire Dell Software from Dell Inc.,” said Isaac Kim, Managing Director of Evergreen Coast Capital. “Dell Software has world class products and talented employees, and we look forward to working with the management team to grow revenues and increase value. We believe these companies offer unique value and operational potential.”

“We’re proud to have built a robust portfolio of software solutions that help make the lives of customers easier,” said John Swainson, president, Dell Software. “Whether they’re managing applications and data, securing their networks, protecting critical information, or deriving key insights from data, customers across the globe have come to rely on Dell Software for top-flight products, service and support. We look forward to continuing that focus as part of the Francisco Partners and Elliott Management portfolio of companies.”

Francisco Partners’ Chief Investment Officer David Golob added, “We have a long and successful track record executing divisional carve-out transactions and we look forward to working with the management teams at these businesses to create additional value for the company, its customers, and its partners as an independent entity.”

Debt financing for this transaction was provided by Credit Suisse and RBC Capital Markets. Barclays and Citigroup acted as lead financial advisors and Shearman & Sterling, Kirkland & Ellis, and Gibson Dunn as legal advisors to Francisco Partners and Evergreen Coast Capital. Goldman, Sachs & Co. acted as exclusive financial advisor and Simpson, Thacher & Bartlett LLP acted as legal advisors to Dell Inc. The transaction is subject to customary regulatory review.

About Francisco Partners

Francisco Partners is a leading global private equity firm, which specializes in investments in technology and technology-enabled services businesses. Since its launch over 15 years ago, Francisco Partners has raised approximately $10 billion in capital and invested in more than 150 technology companies, making it one of the most active and longstanding investors in the technology industry. The firm invests in transaction values ranging from $50 million to over $2 billion, where the firm’s deep sectoral knowledge and operational expertise can help companies realize their full potential.

About Elliott

Elliott Management Corporation manages two multi-strategy hedge funds which combined have approximately $28 billion of assets under management. Its flagship fund, Elliott Associates, L.P., was founded in 1977 making it one of the oldest hedge funds under continuous management. The Elliott funds’ investors include pension plans, sovereign wealth funds, endowments, foundations, funds-of funds, high net worth individuals and families, and employees of the firm.

About Dell

Dell Inc., a wholly owned subsidiary of Denali Holding, Inc., listens to customers and delivers worldwide innovative technology, business solutions and services that give them the power to do more. For more information, visit www.dell.com. For more information on Dell Software, visit software.dell.com.

Disclosure Regarding Forward-Looking Statements

This communication contains forward-looking statements, which reflect Dell Inc.’s current expectations. In some cases, you can identify these statements by such forward-looking words as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “should,” “will” and “would,” or similar expressions. Factors or risks that could cause our actual results to differ materially from the results we anticipate include, but are not limited to: (i) the failure to consummate or delay in consummating the proposed transaction; (ii) the risk that a condition to closing of the proposed transaction may not be satisfied; (iii) the risk that a regulatory approval that may be required for the proposed transaction is delayed, is not obtained, or is obtained subject to conditions that are not anticipated; and (iv) the effect of the announcement of the proposed transaction on Dell Inc.’s relationships with its customers, operating results and business generally. Dell Inc. undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law