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Dell has agreed to a $67 billion deal to buy data storage firm EMC. According to the deal, EMC shareholders will be entitled to receive $33.15 per share, out of which $24.05 will be in cash. The deal marks the biggest takeover in history among two technology companies.
Falling demand and saturation of the PC market have probably led Dell to make this decision. It would allow Dell to diversify and give it the much-needed boost in ever growing data managing market.
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“We’re creating an unbelievable powerhouse of an enterprise company,” said Dell Chairman and CEO Michael Dell.
The combined company’s chairman and chief executive will be Michael Dell, which according to him would be the world’s “largest privately-controlled, integrated technology company”. Notably, the deal also includes a ‘go shop’ provision which allows EMC to ask bids from other parties, giving EMC access to discounted breakup fee in case it finds a more suitable deal.
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FYY Electronic Organizer, Travel Tech Pouch Bag, Cable Organizer Black
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“We will do our duty to make sure we get the best deal for our shareholders and time will show,” said EMC Chairman and CEO Joe Tucci.
The exact cost of the deal will depend on the value of shares in VMware, the software company owned by EMC having a market value of about $33 billion. VMware will remain an independent, listed company even after the deal is finalized.
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Dell’s agreed to pay $24.05 per share to EMC shareholders, plus added value of stock in VMware. Implying that the overall figure is just an approximation, which could change slightly by the time the deal is eventually finalized, which is expected to close sometime between May and October 2016.
The tie-up comes nearly two years after Dell went private in a $25 billion buyout by its founder, Mr. Dell, and Silver Lake. Dell has since shifted focus from personal computers, stifled by demand for tablets and smartphones, towards the ever growing demand for areas like data storage and security. The EMC acquisition will help Dell transition from a consumer-oriented company to a one focused on providing technology for big business, giving it the tools to compete more effectively with other tech giants.
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HOTO Pocket-Size Laser Measuring Tool, EDC Gadget Birthday Gift for Men Dad
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ColorCoral Cleaning Gel Universal Dust Cleaner for PC Keyboard Car Detailing Office Electronics Laptop Dusting Kit Computer Dust Remover, Computer Gaming Car Accessories, Gift for Men Women 160g
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BAGSMART Large Electronic Organizer Travel Case for Tech Accessories, Black
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