Fast-growing Dell Technologies-backed Pivotal Software, which is grabbing share in the cloud platform-as-a-service applications market, filed for an initial public offering with the Securities and Exchange Commission on Friday.
Pivotal posted a net loss of $163 million on a 23 percent increase in sales of $509 million for its fiscal year 2018, ending Feb. 2, 2018. The company did not provide an initial price per share in its S-1 filing.
Dell is currently Pivotal's majority stockholder. Other major Pivotal shareholders include Microsoft, Ford and GE. Once Pivotal goes public, Dell Technologies will own, indirectly through its subsidiaries -- including VMware -- 351,028,548 shares of outstanding Class B common stock.
"As a result, Dell Technologies will be able to exercise control over all matters requiring approval by our stockholders, including the election of our directors and approval of significant corporate transactions. Dell Technologies' controlling interest may discourage or prevent a change in control of our company that other holders of our common stock may favor," said Pivotal in the filing.
The public offering comes on the heels of Dell Technologies considering strategic options that include going public or merging with its subsidiary VMware. Dell CEO Michael Dell said earlier this year his Round Rock, Texas-based company is evaluating the two "potential business opportunities" with the desire to grow the company "even faster and thrive in the very dynamic IT marketplace."
"This is one of Dell Technologies' most highly prized technology assets," said Bob Venero, CEO of Holbrook, N.Y.-based solution provider Future Tech, a Dell EMC Titanium partner. "Pivotal is aimed at taking advantage of the ever-growing cloud opportunities whether they be hybrid, on-premises or native public cloud. The majority of the Fortune 500 are utilizing Pivotal to build cloud applications in some fashion."
Venero said he sees the Pivotal IPO as a major move by Michael Dell to leverage all of his assets to drive cost advantages for partners and customers. "If Michael is doing this there is obviously a good financial and structural reason for him to do it," said Venero. "The one thing we have learned from past success is to trust Michael's instincts around these types of big technology bets. It is going to be very interesting to see what kind of appetite there is for the Pivotal IPO."
related stories
Video
trending stories
sponsored resources

Trend Micro
Managed Security 360

HubStor
Cloud Backup 360

Cysurance
Cyber Insurance 360

Tenable
Cyber Risk 360

Dell Technologies
Dell Technologies Cloud Learning Center

EPOS
EPOS

Fujifilm
Fujifilm

Application Integration 360

Mimecast
Mimecast

Comcast
Comcast Business Learning Center

Hitachi Vantara
Hitachi Vantara

Dell Technologies
Dell Technologies Storage Learning Center

Carbonite
Cloud Storage 360

Sophos
Sophos Cybersecurity Learning Center

Webroot
Webroot Learning Center

BlackBerry
BlackBerry Learning Center

NPD
Industry Trends 360

Symantec
Symantec Business Security Learning Center

Channel Chief Showcase

Acer
Remote Workforce 360

Sherweb
Sherweb

APC by Schneider Electric
Digital Services for Edge Learning Center

VMware

StorageCraft
Disaster Recovery Learning Center

Vertiv
Edge Computing Learning Center

Wasabi
Wasabi

Dell Technologies
Dell Technologies Hybrid Cloud Learning Center

Cradlepoint
5g for Business 360

Comm100
Collaboration & Communications 360

Veeam
Veeam

Trend Micro
Trend Micro Learning Center

eSentire
Managed Detection and Response 360
