Serial Acquirers: How Dell Technologies Uses M&A (and Divestitures) to Reinvent Itself

The Company

Dell Technologies is a global information technology leader best known for its PCs, data‑center infrastructure, and a broad portfolio of software, services, and financing solutions. The company was founded in 1984 by Michael Dell in Austin, Texas, and became Dell Technologies in 2016 after acquiring EMC Corporation in a landmark $67 billion deal. Today, Dell is headquartered in Round Rock, Texas, and operates in more than 170 countries.

Dell’s business spans two main segments: Client Solutions (PCs, laptops, peripherals) and Infrastructure Solutions (servers, storage, networking, and associated software). Its global footprint includes major manufacturing and assembly sites in the U.S., Poland, Ireland, Brazil, India, Malaysia, and China, supported by a vast network of offices and service centers worldwide.

Acquisition History of Dell

Dell’s growth story is deeply tied to mergers and acquisitions. Early strategic moves included EqualLogic (2008, $1.4 billion) to strengthen storage, Perot Systems (2009, $3.9 billion) to enter IT services, and Quest Software (2012, $2.4 billion) to expand software capabilities.

The defining moment came in 2016 with the EMC acquisition for $67 billion, the largest tech deal at the time. This transaction created Dell Technologies and positioned the company as a leader in enterprise IT infrastructure.

In the last five years, Dell has shifted from large-scale acquisitions to targeted software plays. Notable examples include Cloudify (2023), a cloud orchestration platform, and Moogsoft (2023), an AIOps and observability company. These moves align with Dell’s strategy to simplify multicloud operations and embed AI-driven automation across its portfolio.

Trend: Dell’s acquisitions have evolved from hardware and infrastructure to software layers that enable automation, orchestration, and AI-driven insights.

Acquisition Methods of Dell

Dell typically uses a mix of cash, debt, and equity to finance acquisitions. The EMC deal showcased one of the most complex financing structures in tech history, involving investment-grade bonds, high-yield bonds, and term loans, supported by equity contributions from Michael Dell, Silver Lake, and other partners. A large syndicate of global banks underwrote the financing.

Dell does not rely on a single financial advisor but works with top-tier firms depending on the transaction type. For example, JPMorgan advised Dell on the EMC deal, while Morgan Stanley advised on divestitures like Boomi.

Post‑Merger Integration Approach

Dell established a Value Creation and Integration Office during the EMC merger to manage integration across all functions—IT, HR, finance, and operations. The company leveraged its internal IT arm, Dell Digital, to integrate systems and processes, minimizing reliance on external advisors. This structured approach allowed Dell to complete core integration within months and set a template for future deals.

Divestitures of Dell

Dell actively reshapes its portfolio through divestitures:

• Dell Services (Perot Systems) to NTT Data (2016) – $3.06 billion
• RSA Security to a private equity consortium (2020) – $2.075 billion
• Boomi to Francisco Partners & TPG (2021) – $4 billion
• VMware spin‑off (2021), which included an $11.5 billion special dividend, $9.3 billion of which went to Dell to reduce debt.

These moves reflect Dell’s strategy to focus on core infrastructure and cloud offerings while maintaining financial flexibility.

The Future of Dell

Looking ahead, Dell is expected to pursue tuck-in acquisitions rather than megadeals. Likely targets include:

• AIOps and observability platforms to enhance automation.
• Edge computing and telecom orchestration to support 5G and IoT.
• Vertical SaaS solutions that integrate with Dell’s infrastructure.

The emphasis will be on software that simplifies hybrid and multicloud environments and accelerates AI adoption.

Conclusion

Dell Technologies remains a textbook example of a serial acquirer, but its approach has evolved. From building a full-stack infrastructure portfolio through EMC to focusing on software-driven automation, Dell’s M&A strategy reflects the changing demands of enterprise IT. The next chapter will likely feature smaller, strategic acquisitions that strengthen Dell’s position in AI and multicloud ecosystems. If you were leading Dell’s M&A strategy, would you prioritize AIOps, edge orchestration, or vertical SaaS—and why?