Michael Dell investment firm buys into California software maker

Apr 1, 2014
Austin Business Journal

An affiliate of Michael Dell’s investment firm has participated in the $900 million financing of a California software maker. The target company mirrors the type of companies Dell Inc. has been acquiring as it diversifies beyond computers


An affiliate of Dell’s MSD Capital LP made an undisclosed amount of investment in Cloudera Inc., the developer of big data software. Other investors included Google Ventures, T.Rowe Price Group Inc. (Nasdaq: TROW) and Intel Corp. (Nasdaq: INTC), according to a Monday news release


New York-based MSD Capital is an 80-person firm that was established in 1998 to manage about $12 billion for Michael Dell, who is ranked by  Forbes magazine as the 48th richest billionaire with a net worth of $17.5 billion


Dell has commented on several occasions about the need for businesses to manage the large amount of data being collected and stored by clients


Last week, Round Rock-based Dell Inc. acquired Oklahoma-based analytic software maker StatSoft Inc., a 30-year-old developer of software designed for data mining, predictive analytics and data visualization capabilities. Financial terms of the deal were not disclosed


Dell, the No. 3 computer maker in the world, employs 14,000 workers in Central Texas


The company went private last year in a move to enable it to transition beyond personal computers to the higher profit margins provided by software, services and other networking tools. The company has spent more than $20 billion on acquiring software and services companies over the last five years to build up its portfolio of offerings


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