Dell acquires EMC Corp, a data storage company for a deal worth to be $67 billion in cash and shares.
Founded in 1979, EMC Corporation is one the world’s largest computer data storage company that provides data storage, information security, virtualization, analytics, cloud computing and other products and services that allow businesses to store, manage, protect and analyze data. It focuses at large companies, small and medium-sized businesses across various vertical markets. Headquartered in Hopkinton, Massachusetts, the company operates with more than 70,000 employees.
Now, the integration of Dell and EMC will create the largest ‘privately-controlled, integrated technology company. As per the agreement, EMC shareholders will receive cash and shares in a VMware tracking stock. The shareholders would receive around $33.15 per share which includes the above. Further to the merging, Michael Dell will become chairman and CEO of the merged company. Round Rock, Texas would remain to be the headquarters of Dell and the combined enterprise systems business headquarters will be Hopkinton.
EMC CEO Joe Tucci will step down at the closure of the deal around mid next year which would be financed through equity from Michael Dell, MSD Partners, Silver Lake and Temasek, debt financing and cash and the issuing of the tracking stock. Dell and his partners will own 70% of the combined company.
Dell to its customers said, “We are bringing together Dell’s strength in small-business and the mid-market with EMC’s strength in large enterprises. Together, we can serve you better and fuel innovation across our end-to-end portfolio of solutions and across customer segments to generate significant cash flows. In fact, the expected revenue synergies of our combination are three times the cost synergies. This union is all about opportunity, growth and innovation for us and for you. We will be positioned to meet our obligations and continue to invest for the long-term success of your organization.”
In a phone interview, Tucci said, “We are entering a new era where the IT landscape is seeing massive disruption and vast opportunities. Dell merger is considered as best way to position EMC for the future. We will have complementary market portfolios.”