In accordance to the deal, EMC shareholders will receive $24.05 per share, and “tracking stock linked to a portion of EMC’s economic interest in the VMware business”.
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Dell Inc., the world’s third-largest computer maker, said Tuesday at its annual enterprise forum in Taiwan that its acquisition of data storage company EMC Corp. will be complementary in terms of products and market strategy.
The merger of Dell and EMC will create the industry leader in the $2 trillion information technology markets, claimed Dell during a conference call. The EMC deal will be financed by MSD Partners, the private equity firm Silver Lake, Singapore’s state investment company Tamasek, new common equity from Michael Dell and about $40bn in new debt provided by a consortium of banks. The deal is expected to close in mid-2016, with EMC becoming a wholly owned subsidiary of Dell.
Michael Dell, chairman and CEO of the Dell, stated that the acquisition will help the company create an “unbelievable powerhouse”.
This move comes at a time where the landscape of technology is changing drastically and both companies need to adapt to the changes. “I truly believe that the combination of EMC and Dell will prove to be a winning combination for our customers, employees, partners and shareholders”.
When asked if there would be layoffs as a result of the acquisition, Dell responded: “There will be adjustments to the business, but other companies are better at reducing headcounts than we are”. He will be the combined company’s chairman and CEO. Dell’s hefty purchase of EMC is just the latest in a string of monster M&A transactions, topped (so far) by the 0-billion pursuit of brewer SABMiller by Anheuser-Busch InBev.
The merger agreement includes a 60-day “go-shop” provision that allows EMC to solicit bids from other parties and pay a discounted breakup fee to Dell if a deal is made with another company, Reuters first reported on Saturday.
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“It is all about the software defined datacentre of the future”. With the deal, Dell instantly becomes an enterprise superpower with a prominent position in almost every key enterprise technology segment, including servers, storage, virtualisation, networking, cloud computing services, security, big data and IT services.
