May 19, 2020

Where is the opportunity in a volatile energy market?

Goldman Sachs
Oil
Michele Della Vigna
CNBC
Tomás H. Lucero
2 min
Where is the opportunity in a volatile energy market?

The energy market is as volatile as it has ever been. For the investor, it’s very difficult to identify winning opportunities, and even more difficult to place trust in them. Is there any room for opportunity at all in such a changing market?

In a recent interview with CNBC, Head of European Energy Research at Goldman Sachs Michele Della Vigna, discusses these issues. In his eyes, opportunity lies in the improvement of U.S. exploration and production (E&P.)  

“It’s a time of great change. And the industry is completely transforming as we think that the share producers in the U.S. and OPEC are fighting for market share, really making the rest of the industry fight for relevance at this point in time. We have key deflationary trends in terms of costs. We have continued improvement in the U.S. E&P’s in terms of efficiency and production curve and that’s exactly where we think the opportunity is. The opportunity is in those companies that can drive this continued improvement in productivity in the core of the shale plates in the U.S.,” Vigna told CNBC.

Related Story: What is the financial impact of the oil spill from All American in the energy industry?

In the next segment, Vigna got specific about what he was talking about.

“The key companies that would benefit here are the oil service companies that mainly work on the fracking and completion of the U.S. wells and the companies that own the best part of the Permian, the Eagle Ford and the back end. Where instead, the companies that will really struggle are the companies more connected to the deep water value chain, to heavy oil, to LNG and, more broadly, within the big oils will really struggle, within this environment, to rethink their whole business model,” he stated.

*Article is strictly for informational purposes only and is not intended as financial advice

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May 3, 2021

Dell to sell cloud-based iPaaS Boomi in US$4bn deal

Dell
Boomi
Cloud
Acquisition
Kate Birch
3 min
Francisco Partners and TPG Capital agree to acquire Boomi – provider of cloud-based integration platform as a service – from Dell Technologies for US$4bn
Francisco Partners and TPG Capital agree to acquire Boomi – provider of cloud-based integration platform as a service – from Dell Technologies for U...

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.”

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