Dell Inc. and EMC Corporation today announced they have signed a definitive agreement under which Dell, together with its owners, Michael S. Dell, founder, chairman and chief executive officer of Dell, MSD Partners and Silver Lake, the global leader in technology investing, will acquire EMC Corporation. The transaction is expected to be around USD $67 billion. This deal will unite Dell’s strength with small business and mid-market customers with EMC’s strength with large enterprises to fuel profitable growth and generate significant cash flows.
Mr. Dell and related stockholders will own approximately 70 percent of the company’s common equity, excluding the tracking stock, similar to their pre-transaction ownership. EMC stockholders to receive approximately $33.15 per share in a combination of cash as well as tracking stock linked to a portion of EMC’s economic interest in the VMware business.
The combination of Dell and EMC is expected to create the world’s largest privately-controlled, integrated technology company. The company will be a leader in the extremely attractive high-growth areas of the $2 trillion information technology market with complementary product portfolios, sales teams and R&D investment strategies. The transaction combines two of the world’s greatest technology franchises with leadership positions in servers, storage, virtualization and PCs and it brings together strong capabilities in the fastest growing areas of the industry, including digital transformation, software-defined data center, hybrid cloud, converged infrastructure, mobile and security.
VMware will remain a publicly-traded company and continue to provide customers value through leading software- defined data center technology, together with its cloud, mobile and desktop offerings. This transaction is expected to accelerate VMware’s growth across all of its businesses through significant synergies with Dell’s solutions and go-to-market channels. VMware remains committed to investing in and partnering with its strong, industry ecosystem.
The combined company will consist of strategically-aligned businesses and incubated high-growth assets, fostering innovation, enabling customer choice and attracting and retaining world-class talent.
EMC and VMware hosted a joint conference call with investors on October 12, 2015 at 7:45 am Eastern Time to discuss the transaction. The call can be heard here at http://www.emc.com/corporate/investor-relations/index.htm.
This is the biggest merger ever in the Tech industry. The previous bigger was the HP-Compaq acquisition; however, this is expected to be twice as big as that.
I think, Citrix is the next big company to look at. I predict, either Microsoft or HP will buy it. Lets see if it ever happens!
— Vijay Raj (@rajvj) October 12, 2015