Dell Boomi: Once a Public Darling, Now a Private Player

Boomi, the software company well-regarded for its cloud-based integration platform as a service (iPaaS), was once a topic for stock market discussion. Acquired by Dell in 2010, Boomi flourished under its umbrella, growing its customer base and establishing itself as a leader in intelligent data use.

However, in 2021, Dell strategically decided to sell Boomi to private equity firms Francisco Partners and TPG Capital for a cool $4 billion. This move allowed Dell to refocus on its core PC and infrastructure businesses while positioning Boomi for its next chapter as an independent entity.

Why Did Dell Sell Boomi?

Dell’s decision to divest Boomi was part of a larger strategy to streamline its operations. By letting go of non-core businesses, Dell aimed to increase its focus on areas it deemed central to its future success. The sale also provided Dell with funds for debt reduction and potential acquisitions within its core areas.

What’s Next for Boomi?

As a private company, Boomi’s financial information is no longer publicly available. However, with experienced private equity partners Francisco Partners and TPG Capital backing them, Boomi is poised to continue its growth trajectory. The track record of these partners in successfully scaling tech companies, coupled with their significant investment in Boomi, instills confidence in the company’s future potential.

Boomi: A Cautionary Tale for Public Investors?

For investors interested in Boomi’s stock, the company’s privatization closed the door on that possibility. This is a reminder that acquisitions and divestitures can significantly impact the publicly traded landscape.

However, the Boomi story also serves as a testament to the burgeoning importance of the iPaaS market. As businesses increasingly rely on data integration for digital transformation, companies like Boomi are not only well-positioned for continued success but also represent potential investment opportunities, even if it’s outside the public eye.