Dell prepares asset sales

Dell's Computer Shipments Increase 28% In ChinaTin box shifter Michael Dell is preparing to sell around $10 billion in non-core assets, including software and services, to reduce the heavy debt load it will be taking on to buy EMC.

If it does nothing, Dell will be saddled with a $49.5 billion overdraft once the merger with EMC is completed.

Dell is expected to sell Quest Software, which helps with information technology management, SonicWall, an email encryption and data security provider, back-up solutions unit AppAssure and IT services provider Perot Systems.

Not up for sale are Dell’s hardware assets such as servers, which are crucial in its quest to dominate the large enterprise market through its merger with EMC.

This is all rumour and speculation but does explain how Dell expected to make so much money when it had such a high debt loading.

The EMC deal is expected to close between May and October 2016. Dell has stated that the combined company will focus on reducing its debt during the first 18 to 24 months after the merger to get its investment-grade credit rating back.