Why the portfolio company EMC Pivotal concealed $ 400 million while announcing the results of the investment round
On Thursday, software developer Pivotal Software summed up its round of financing. The startup reported that it raised $ 253 million from investors, including companies such as Ford and Microsoft . Due to this, the start-up estimate has risen to $ 2.8 billion.
Auto giant Ford Motor has invested $ 182.2 million in a startup. As part of an investment deal between Ford and Pivotal, joint laboratories will be opened in the United States and Europe, in which engineers from both companies will work.
There was a simple explanation for this: EMC took this amount for debt, for one increased its stake in the project, to finally pull the startup out of the debt trap. The fact is that EMC at one time bought out most of the startup along with its debts. The results of the round turned out to be non-standard, but now Pivotal, as they say, owes nothing to anyone.
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The representative of the startup noted that during the 3 years of its existence, the project managed to get through the break-even point, get rid of debts and acquire large strategic investors.
EMC is still in the process of merging with DELL . In October 2015, Dell agreed to buy EMC for $ 67 billion. Perform all the formalities relating to this acquisition, is planned in the period from June to October 2016. Earlier, Dell said that she would have to borrow about $ 50 billion dollars to complete the transaction. In order to reduce the debt burden of the company sold part of the assets.
According to Michael Dell, the merger of corporations will lead to the creation of Dell Technologies, which includes a wide range of areas, including all of today's Dell business, EMC Information Infrastructure and RSA, Pivotal, Virtustream, VMware and Dell SecureWorks.
Under the Dell brand, the company's client business will develop, including the release of personal computers, while the division specializing in corporate IT infrastructures will be called Dell EMC.
Dell Technologies will remain a single company offering a wide range of products - from end devices to equipment for data centers and cloud infrastructure.
After completion of the transaction, Dell Technologies will become the world's largest supplier of enterprise solutions, offering customers products for IT infrastructure, including PCs and servers, data center solutions, cloud solutions and much more. Competing HP has ceased to be such after the separation of Hewlett Packard Enterprise and HP Inc., said Michael Dell.
Auto giant Ford Motor has invested $ 182.2 million in a startup. As part of an investment deal between Ford and Pivotal, joint laboratories will be opened in the United States and Europe, in which engineers from both companies will work.
Pivotal specializes in creating tools for rapid application development and related consulting services. Pivotal is one of the main developers of the PaaS platform Cloud Foundry , a commercial version of the same open source project. In 2012, EMC acquired a significant stake in the company, the value of that purchase was not disclosed. 10% of the startup also owns General Electric .However, Techcrunch, citing documents from the SEC, reported that Pivotal actually received $ 653 million. Where did the remaining $ 400 million go?
There was a simple explanation for this: EMC took this amount for debt, for one increased its stake in the project, to finally pull the startup out of the debt trap. The fact is that EMC at one time bought out most of the startup along with its debts. The results of the round turned out to be non-standard, but now Pivotal, as they say, owes nothing to anyone.
')
The representative of the startup noted that during the 3 years of its existence, the project managed to get through the break-even point, get rid of debts and acquire large strategic investors.
On the Pivotal Cloud Foundry alone, the company earned $ 200 million over the past year.
EMC is still in the process of merging with DELL . In October 2015, Dell agreed to buy EMC for $ 67 billion. Perform all the formalities relating to this acquisition, is planned in the period from June to October 2016. Earlier, Dell said that she would have to borrow about $ 50 billion dollars to complete the transaction. In order to reduce the debt burden of the company sold part of the assets.
According to Michael Dell, the merger of corporations will lead to the creation of Dell Technologies, which includes a wide range of areas, including all of today's Dell business, EMC Information Infrastructure and RSA, Pivotal, Virtustream, VMware and Dell SecureWorks.
Under the Dell brand, the company's client business will develop, including the release of personal computers, while the division specializing in corporate IT infrastructures will be called Dell EMC.
Dell Technologies will remain a single company offering a wide range of products - from end devices to equipment for data centers and cloud infrastructure.
After completion of the transaction, Dell Technologies will become the world's largest supplier of enterprise solutions, offering customers products for IT infrastructure, including PCs and servers, data center solutions, cloud solutions and much more. Competing HP has ceased to be such after the separation of Hewlett Packard Enterprise and HP Inc., said Michael Dell.
Source: https://habr.com/ru/post/300700/
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