Michael Dell is taking Dell Technologies public again.

The founder of the Round Rock, Texas-based tech firm, who took the company private five years ago, is overseeing the $21.7 billion purchase of DVMT, a stock that tracks the performance of cloud tech firm VMware.

Dell owns more than 80% of the Palo Alto, Calif.-based software virtualization company, which it got as part of the deal when it and private equity firm Silver Lake bought EMC for $67 billion in 2015. That deal remains the largest technology industry deal ever.

Since taking Dell private, the PC company has evolved into an information technology company, a strategy fueled by the 2015 purchase of EMC, a data storage provider. Within EMC’s portfolio was VMWare, which remains a separately-traded company.

The revitalization of the company led to Dell and Silver Lake’s decision to make the transaction to go public. In its most recent reported financials, Dell said revenue rose 19% to $21.4 billion for the three months ending May 4. The company saw double-digit growth in commercial client, servers, storage and at VMware. Also up: PC shipments and workstations.

“Unprecedented data growth is fueling the digital era of IT, and we are uniquely positioned with our portfolio of technologies and services to enable the digital, IT, security and workforce transformations of our customers,” Michael Dell said in a statement announcing the transaction.

Dell, who owns 72% of Dell Technologies will remain CEO and chairman.”Most importantly, I remain deeply committed to this company and working with our world-class team to build the long-term value of Dell Technologies and its businesses,” he said.

Shareholders of DVMT get $109 in cash or 1.3665 shares of the new publicly-traded Dell Technologies Class C common stock, which will be traded on the New York Stock Exchange.

VMWare will remain a subsidiary of Dell and shares representing the 18% of the company (VMW) not owned by Dell were up nearly 10% in premarket trading Monday. As part of the deal, VMware will issue an $11 billion dividend, with $9 billion going to Dell.

By taking Dell private, the company was able to weather the downturn in the PC industry and expand into other growing IT sectors including artificial intelligence and Internet of Things devices.

The boards of Dell and VMWare approved the transaction Sunday night, as reported by The New York Times. “I believe we’ve accomplished what we set out to do in evolving the business,” Dell told the Times. “But the work of evolving a company is never done.”

Follow USA TODAY reporter Mike Snider on Twitter: @MikeSnider.


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