Dell Technologies has completed the spinoff of its 81% equity ownership of VMware.

As a standalone company, VMware is now worth $64 billion.

In a statement, Dell Technologies said the two companies will be “positioned for growth in the data era.”

Additionally, the two will “retain a strong and unique commercial agreement that preserves the most valuable parts of the companies’ relationship.”

This includes the co-development of solutions and alignment on sales and marketing activities.

VMware customers will also have access to Dell Financial Services to help finance their tech purchases.

Dell’s Michael Dell

Dell Technologies CEO Michael Dell said the spinoff “marks an important milestone” for both vendors.

“We are unlocking significant value for stakeholders, while maintaining our close partnership in sales, support and innovation for our customers.

“We are full speed ahead, solving customer problems, driving progress and capturing opportunities in areas like multicloud, edge and telecom.”

In a blog post about the spinoff, VMware CEO Raghu Raghuram described the move as the “start of a new era for VMware”.

He said: “As a standalone company, we now have the flexibility to partner even more deeply with all cloud and on-premises infrastructure companies to create a better foundation that drives results for our customers. And the increased flexibility we will have to use equity to complete future acquisitions will help us remain competitive.”

Terms of the Deal

The terms of the deal included an $11.5 billion cash dividend that resulted in a $27.40 per share dividend payment to all VMware stockholders.

This includes Dell Technologies, which has received $9.3 billion and will use the funds to help pay down an estimated $70 billion dealmaking debt. Dell Technologies has received Investment Grade corporate family ratings from all three major credit rating agencies.

Dell Technologies first announced its plan to spin-off VMware in April. At the time the company said for partners, “joint momentum in road maps and innovation, and in sales and support, all move forward full-steam ahead.”

At Dell Technologies World in May, Michael Dell reiterated that the spinoff “will drive growth opportunities for both companies and unlock significant value for stakeholders.”

Dell will remain both chair and CEO of Dell Technologies, and chair of the VMware board. The VMware board of directors is unchanged.