EMC May Have Pivotal IPO Lined Up For 2016
Following Dell EMC mege-acquisttion, EMC’s Pivotal Software could go the way of VMware
Dell and EMC may be looking forward to a Pivotal flotation early next year, according to sources speaking to Recode.
The news comes after Dell’s huge $67 billion takeover of EMC in October.
Any move by EMC to IPO Pivotal, which it co-owns with GE, would look very similar to what happened with VMware, offering a minority stake to public shareholders.
Both Dell and EMC have declined to comment on the rumours.
Cloud
Pivotal itself was only founded in 2013, spun out from EMC and VMware. The division provides software for creating applications for use in cloud computing. Sources told Recode that EMC would sell around a 20 percent of Pivotal shares, and keep the remainder.
In 2014, Pivotal grew its fourth-quarter revenue by 18 percent and full-year 2014 revenue 27 percent year over year. The division is one of the fastest growing of EMC’s federated businesses.
EMC CEO Joe Tucci has made no secret of his plans to float Pivotal eventually, despite no concrete timeline ever being revealed.
Dell boss Michael Dell backs the plans, however, with Recode citing Dell as saying: “That’s the path that Pivotal has been on, and I agree with that path.”
