Dell, the US based multinational technology company, announced that it would spin off its stake valued at $52 billion in VMware Inc, a cloud software company, as it expects to bolster its financial position on looking new markets and works to help clients seeking to improve their digital strategies.

It is the latest transaction in a series of Dell-based financial restructurings that Michael Dell established in 1984. After publication by 1988, Mr Dell and Silver Lake, a private equity group that was one of the biggest on record, went private in a leveraged purchase for 2013. After EMC Corp. had been purchased, Dell moved into public markets with stock in a publicly traded vehicle tracking Dell's interest in VMware. they made a complicated financial transfer.

The company also received a large debt for Dell's $67 billion merger with EMC in 2016.

The company stated that it plans to pay off debt with net cash from the dividend. In a presentation to the investment firm, it proclaimed that it had a debt of $33.4 billion, excluding a funding segment, from its fourth quarter. If VMware had previously been spin-off expected, the presentation would have shown that the company had $24.1 billion in this debt.

Earlier, VMware Inc., had declared to enable customers to capture the power of multi-domain applications by launching the new VMware Cloud VMware Inc. The company then decided on delivering enhanced integrated experience to its customers through the release of fresh offerings such as VMware Cloud Universal, VMware Cloud Console and VMware App Navigator.

Dell said VMware would pay the shareholders of the company a special cash dividend of $11.5 billion at $12 billion, including $9.3 billion at $9.7 billion. The company has an interest in VMware of approximately 81 percent and it stated that it plans to pay off debt with net cash from the dividend.

In addition, the Company created 'All Software, Anywhere' Modular Multicloud Systems,' which means VMware Cloud can be used as both on-site and cloud platform for unified security, operations and support for traditional and modern applications that bind all native cloud services and fulfil developers' and IT operators' needs. Customers can now take advantage of the simplicity of a single multi-cloud operating model as well as portability to mitigate the problems posed by a single cloud silos.

For more than two decades, VMware has supplied critical business apps worldwide. More than 300,000 businesses are building and running over 85 million jobs using VMware and over five million developers are using the platform to develop software.