Bank of America advances racial and economic equality
Back in June 2020, Bank of America announced its ambitions to invest US$1bn in a four year commitment to advance racial equality and economic opportunity.
As part of its ambitions, Bank of America aims to dedicate US$50mn to supporting minority depository institutions (MDIs) and community development financial institutions (CDFI) banks. In the bank’s efforts to advance its US$50mn goal, Bank of America has announced its completion of 10 equity investments acquiring 4.9% of common equity in each organisation.
The aim of the 10 equity investments is to provide benefits across multiple states and in the communities that MDIs and CDFI banks serve
“By providing equity capital to minority depository institutions, critical projects can be scaled. MDIs are closely connected to the needs of their communities, and these investments will help transform and enable more positive change and economic opportunity,” said Bank of America CEO Brian Moynihan.
- Carver Bancorp, Inc.
- Carver Financial Corporation
- CNB Bancorp, Inc. (parent of Commonwealth National Bank)
- CSB&T Bancorp, Inc. (parent company of Citizens Savings Bank and Trust)
- First Independence Corporation
- Liberty Financial Services, Inc.
- M&F Bancorp, Inc.
- SCCB Financial Corp. (parent company of Optus Bank)
- Southern Bancorp, Inc.
- Unity National Bank of Houston, N.A.
These equity investments made by Bank of America have been completed in addition to its US$100mn deposit into MDIs, as well as its US$1.6bn CDFI bank portfolio operations that includes 255 partner CDFI banks in all 50 states. The portfolio’s ambition is to provide access to capital for individuals and small businesses that do not qualify with traditional lenders.
Dell to sell cloud-based iPaaS Boomi in US$4bn deal
Global investment firm Francisco Partners and private equity platform TPG Capital have entered into an agreement with Dell Technologies to acquire cloud-based integration platform as a service provider Boomi in a cash deal valued at US$4bn. The deal is expected to complete this year.
“Boomi has flourished as part of Dell Technologies, growing exponentially since we acquired them in 2010. This proposed transaction positions Boomi for its next phase of growth and is the right move for both companies, our shared customers and partners,” said Jeff Clarke, vice chairman and chief operating officer of Dell Technologies.
“For us, we're focused on fuelling growth by continuing to modernise our core infrastructure and PC businesses and expanding in high-priority areas including hybrid and private cloud, edge, telecom and APEX. All designed to help organisations thrive in the do-from-anywhere economy.”
Dell’s Boomi sell-off follows VMware spin-off
This announcement comes just two weeks after Dell said it would spin-off its 81% equity ownership of VMware to form two standalone companies. This would result in an expected US$9.3bn cash dividend payment to Dell, which says it will use those funds to pay down debt.
When Dell acquired Boomi in 2010 for an undisclosed fee, Boomi offered the industry’s only pure SaaS application integration platform, powered by its revolutionary AtomSphere technology. Dell saw Boomi as addressing one of the top barriers to cloud adoption at that time, which was managing and integrating cloud-based applications with existing applications and databases.
Now, Boomi has more than 15,000 customers globally and is still seen as a leader when it comes to organisations connecting applications, processes and people across a range of locations and devices – a process that can take weeks rather than months.
“I am incredibly proud that through innovation, passion and relentless execution, the Boomi team has created a unified platform for the modern-day hybrid IT landscape that thousands of customers worldwide depend on to digitally transform their business,” said Chris McNabb, chief executive officer of Boomi.
“By partnering with two tier-one investment firms like Francisco Partners and TPG, we can accelerate our ability for our customers to use data to drive competitive advantage. In this next phase of growth, Boomi will be in a position of strength to further advance our innovation and market trajectory while delivering even more value to our customers.”
Francisco Partners has invested in more than 300 technology companies since its launch 20 years ago and has more than US$25bn in assets under management.
“The ability to integrate and connect data and workflows across any combination of applications or domains is a critical business capability, and we strongly believe that Boomi is well positioned to help companies of all sizes turn data into their most valuable asset,” said Dipanjan Deb, co-founder and chief executive officer, and Brian Decker, partner, at Francisco Partners
Nehal Raj, partner, and Art Heidrich, principal, at TPG Capital added: “The need for automation and data integration across applications has never been greater. Boomi's cloud-native platform enables enterprises to streamline business processes and is essential for driving digital transformation.”