Dell Set To Acquire EMC For $67 Billion
It has finally been made official. Dell Inc. is set to acquire EMC Corporation. As part of this agreement, EMC shareholders will be receiving a total combined consideration of $33.15 per EMC share, with the transaction value totaling around $67 billion. On the other hand, EMC’s VMware business will continue to be run as an independent and publicly-traded company.Advertisement
For both companies, the partnership represents a future bigger than anything either could achieve separately. After all, Dell and EMC in one company means that together, they can become the “powerhouse in the technology industry” that will deliver as much as $80 billion in revenue. More than that, the combined expertise of Del and EMC will also mean that they can readily capitalize on an information technology market that is worth as much as $2 trillion. Here, they can effectively grow in the servers, storage, virtualization and PCs market segments. At the same time, the new partnership will also mean becoming highly competitive when it comes to hybrid cloud, convergence infrastructure, mobile, security, digital transformation and software-defined data center.
At the completion of the transaction, Dell founder, chairman and chief executive officer Michael S. Dell will also become the chief executive officer and chairman of the combined company. Furthermore, Dell will continue to operate its headquarters in Round Rock, Texas while the headquarters of the combined business will be located in Hopkinton, Massachusetts.
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At the same time, EMC Chairman and Chief Executive Officer Joe Tucci says that EMC will maintain its leadership for its Pivotal, Virtustream, EMC Information Infrastructure and VMware businesses. Meanwhile, Tucci says the occasion is bittersweet for him. He shall only be staying on board at till the closing of the transaction. No timeline has been given with regard to when the transaction will be completed.