Dell finalises VMware spin-off

Dell Technologies' spin-off of its majority shareholding in VMware has been completed

Dell has completed the spin-off of its 81 per cent share in software vendor VMware.

The tech giant announced the move back in April this year, with CEO Michael Dell claiming it would "drive additional growth opportunities for Dell Technologies as well as VMware and unlock significant value for stakeholders".

VMware, which is valued at nearly $64bn, has also distributed a special cash dividend of $11.5bn to all VMware shareholders as part of the arrangement, with Dell Technologies receiving $9.3bn which it says will be used to "pay down debt".

Both will now stand alone as separate companies but will "retain a strong and unique commercial agreement that preserves the most valuable parts of the companies' relationship".

"Today marks an important milestone for both Dell and VMware. We are unlocking significant value for stakeholders, while maintaining our close partnership in sales, support and innovation for our customers," said Michael Dell.

"We are full speed ahead, solving customer problems, driving progress and capturing opportunities in areas like multi-cloud, edge and telecom."

Michael Dell will continue as chairman of the VMware board and is also a significant shareholder within the company.