ROUND ROCK, Texas--(BUSINESS WIRE)--Dell Technologies Inc. (NYSE: DVMT) announced its board of directors has approved a new stock repurchase program under which the company is authorized to repurchase up to $500 million of shares of the company’s Class V common stock over a period of six months, using assets of the company’s Class V Group.
At the same time, the Dell Technologies board of directors approved the suspension of the previously reported DHI Group repurchase program, under which the company was authorized to repurchase up to $1 billion of shares of the company’s Class V common stock over a period of two years, using assets of the company’s DHI Group. Before its suspension, the company had repurchased approximately $324 million of Class V common stock under the DHI Group program.
Dell Technologies also announced that it has entered into a stock purchase agreement under which VMware, Inc. (NYSE: VMW) will purchase for cash $500 million of VMware Class A common stock from a wholly-owned subsidiary of Dell Technologies. Dell Technologies intends to apply the proceeds from the sale to the new Class V Group repurchase program.
These transactions are intended to reduce the outstanding shares of the Class V common stock, lower expenditures for VMware’s Class A common stock repurchase program and provide Dell Technologies with balance sheet efficiencies. Additional details regarding these transactions will be provided in Dell Technologies’ current report on Form 8-K to be filed by the company with the U.S. Securities and Exchange Commission.
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Special Note on Forward-Looking Statements:
Statements in this press release that relate to planned repurchases of Dell Technologies’ Class V common stock, the planned sale to VMware of VMware Class A common stock, the intended use of proceeds from such sale, anticipated balance sheet efficiencies and similar matters are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933 and are based on Dell Technologies’ current expectations. In some cases, you can identify these statements by such forward-looking words as “anticipate,” “believe,” “confidence,” “could,” “estimate,” “expect,” “guidance,” “intend,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should,” “will” and “would,” or similar words or expressions that refer to future events or outcomes.
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This list of risks, uncertainties, and other factors is not complete. Dell Technologies discusses some of these matters more fully, as well as certain risk factors that could affect the Dell Technologies’ business, financial condition, results of operations, and prospects, in its filings with the Securities and Exchange Commission, including the prospectus/proxy statement forming part of Dell Technologies’ Registration Statement on Form S-4 (Registration No. 333-208524) and Dell Technologies’ quarterly reports on Form 10-Q and current reports on Form 8-K. These filings are available for review through the Securities and Exchange Commission’s website at www.sec.gov. Any or all forward-looking statements Dell Technologies makes may turn out to be wrong and can be affected by inaccurate assumptions Dell Technologies might make or by known or unknown risks, uncertainties and other factors, including those identified in this press release. Accordingly, you should not place undue reliance on the forward-looking statements made in this press release, which speak only as of its date. Dell Technologies does not undertake to update, and expressly disclaims any duty to update, its forward-looking statements, whether as a result of circumstances or events that arise after the date they are made, new information or otherwise.
