Dell Technologies has terminated its product distribution agreement with former subsidiary VMware. The PC maker said in a regulatory filing on Tuesday that it notified VMware owner Broadcom to terminate the commercial framework agreement between the two parties.
The agreement between Dell and VMware stipulates that Dell will continue to distribute VMware's products and services after the virtualization software company is spun off in 2021. Under the agreement, Dell will continue to integrate VMware's products with Dell's products and sell them to customers.
Dell said that under the agreement, either party can terminate the deal if there is a change of control of the other party. Semiconductor maker and software company Broadcom completed its $69 billion acquisition of VMware in November.
Dell said the agreement "provides a framework for various commercial activities between the parties," including Dell's distribution of VMware's products and services, as well as collaboration between the two companies on solutions and go-to-market activities.