Dell Technologies has completed the spin-off of its 81% equity ownership of VMware Inc., thus making VMware an independent company. The two companies, however, will retain a strong and unique commercial agreement that preserves the most valuable parts of the companies’ relationship, such as the co-development of critical solutions and alignment on sales and marketing activities, while allowing strategic flexibility. VMware will continue to use Dell Financial Services to help its customers finance their digital transformations.

Michael Dell will remain chair and chief executive officer of Dell Technologies, as well as chair of the VMware board. The VMware board of directors is unchanged.

“Today marks an important milestone for both Dell and VMware. We are unlocking significant value for stakeholders, while maintaining our close partnership in sales, support and innovation for our customers,” said Michael Dell, chairman and chief executive officer, Dell Technologies. “We are full speed ahead, solving customer problems, driving progress and capturing opportunities in areas like multi-cloud, edge and telecom.”

The terms of the spin-off included an $11.5 billion [CD1] special cash dividend that resulted in a $27.40 per share dividend payment on November 1, 2021 to all VMware stockholders as of close of business on October 29, 2021.