Dell Technologies’ Spin-off of VMware

Simpson Thacher represented Dell Technologies in the transaction.

Dell Technologies Inc. (NYSE: DELL) announced the agreement to spin-off its 81% equity ownership interest in VMware, Inc. (NYSE: VMW). The terms include a significant simplification to the corporate ownership structure of VMware and an $11.5 billion to $12 billion special cash dividend to be paid to all VMware stockholders immediately prior to the spin-off, subject to certain conditions. Dell Technologies stockholders will receive a pro-rata distribution of VMware shares held by Dell Technologies, and Michael Dell and Silver Lake Partners will own direct interests in VMware. The transaction, which will result in two standalone companies, is expected to close during the fourth quarter of calendar 2021, subject to certain conditions.

Dell Technologies helps organizations and individuals build their digital future and transform how they work, live and play. Dell Technologies provides customers with the industry’s broadest and most innovative technology and services portfolio for the data era.

VMware software powers the world’s complex digital infrastructure. The company’s cloud, app modernization, networking, security, and digital workspace offerings help customers deliver any application on any cloud across any device.

The Simpson Thacher team advising Dell Technologies included Atif Azher, Bill Dougherty, Naveed Anwar, Mark Myott, Usman Arain, Mark Underwood, David Wuchenich, Paul Clatterbuck, Jacob Gindt, Essie (Aseda) Ghartey-Tagoe and Jessica Mason (M&A); Kenneth Wallach, Bill Hinman, Hui Lin, William Golden, Eva Kang, Jessica Asrat and Evan Zuckerman (Capital Markets); Jennifer Hobbs, Jennifer Levitt and Catherine Burns (Banking and Credit); Lori Lesser, Genevieve Dorment, Amber Harezlak, Melanie Jolson and Samuel Watters (Intellectual Property); Andrew Purcell, Tyler Robbins, Abigail Hopper and Scott Grundei (Tax); Jennifer Nadborny and Bradley Goldberg (PCAP); Tristan Brown and Patricia Adams (ECEB); Jonathan Lindabury (Derivatives); Rajib Chanda (Registered Funds); Krista McManus (Real Estate); Steven DeLott (Insurance); Adeeb Fadil (Environmental); Sara Razi, Kelly Karapetyan, James Logie and Daniel Owsley (Antitrust); and Jennie Getsin (Blue Sky).

Involved fees earner: Patricia Adams – Simpson Thacher & Bartlett; Naveed Anwar – Simpson Thacher & Bartlett; Usman Arain – Simpson Thacher & Bartlett; Jessica Asrat – Simpson Thacher & Bartlett; Atif Azher – Simpson Thacher & Bartlett; Tristan Brown – Simpson Thacher & Bartlett; Catherine Burns – Simpson Thacher & Bartlett; Rajib Chanda – Simpson Thacher & Bartlett; William Paul Clatterbuck – Simpson Thacher & Bartlett; Steven DeLott – Simpson Thacher & Bartlett; Genevieve Dorment – Simpson Thacher & Bartlett; William Dougherty – Simpson Thacher & Bartlett; Adeeb Fadil – Simpson Thacher & Bartlett; Jennie Getsin – Simpson Thacher & Bartlett; Essie Ghartey-Tagoe – Simpson Thacher & Bartlett; Jacob Gindt – Simpson Thacher & Bartlett; Bradley Goldberg – Simpson Thacher & Bartlett; William Golden – Simpson Thacher & Bartlett; Scott Grundei – Simpson Thacher & Bartlett; William Hinman – Simpson Thacher & Bartlett; Jennifer Hobbs – Simpson Thacher & Bartlett; Abigail Hopper – Simpson Thacher & Bartlett; Melanie Jolson – Simpson Thacher & Bartlett; Eva Kang – Simpson Thacher & Bartlett; Kelly Karapetyan – Simpson Thacher & Bartlett; Lori Lesser – Simpson Thacher & Bartlett; Jennifer Levitt – Simpson Thacher & Bartlett; Hui Lin – Simpson Thacher & Bartlett; Jonathan Lindabury – Simpson Thacher & Bartlett; James Logie – Simpson Thacher & Bartlett; Jessica Mason – Simpson Thacher & Bartlett; Krista McManus – Simpson Thacher & Bartlett; Mark Myott – Simpson Thacher & Bartlett; Jennifer Nadborny – Simpson Thacher & Bartlett; Daniel Owsley – Simpson Thacher & Bartlett; Andrew Purcell – Simpson Thacher & Bartlett; Sara Razi – Simpson Thacher & Bartlett; Tyler Robbins – Simpson Thacher & Bartlett; Mark Underwood – Simpson Thacher & Bartlett; Kenneth Wallach – Simpson Thacher & Bartlett; Samuel Watters – Simpson Thacher & Bartlett; David Wuchenich – Simpson Thacher & Bartlett; Evan Zuckerman – Simpson Thacher & Bartlett;

Law Firms: Simpson Thacher & Bartlett;

Clients: Dell Technologies;

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Author: Martina Bellini