EMC Corp shareholders, of course will receive approximately $33.15 per share and this includes cash as well as tracking stock linked to a few of the company’s existing economic interest.
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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. EMC CEO Joe Tucci is due to retire soon.
Dell has spent years trying to make the leap from PCs and small and medium-sized businesses to a full set of components for large enterprises.
EMC and Dell said they had no immediate plans to lay off employees but this remains a looming possibility. “That’s $2.5 billion that they will allocate away from R&D and other business critical activities, which will keep them from better serving their customers”, The Register quotes her saying. “With EMC, Dell improves its ability to compete well beyond the SMB market into higher-end enterprise markets, which increases HP’s competition”, Computer World wrote. The future of EMC has been a hot topic over the past 12 months with rumours that everyone from HP to its own subsidiary VMware were looking at it with acquisitive eyes.
The billion price tag isn’t the only hefty figure floating around and there will be many challenges for the newly merged companies.
The transaction signs the largest technology sector agreement on record, topping U.S. chipmaker Avago Technologies’ $37 billion offer for competitor Broadcom, CNBC said.
EMC’s board has approved the merger agreement and intends to recommend that the company’s stockholders approve the deal.
Whitman ended her email saying: “All of this at the very moment when we have completed our journey to create two new, focused companies”.
The deal is expected to close in mid-2016, subject to regulatory approval.
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Data centre software company VMWare, which is now controlled by EMC, will remain a publicly listed company and Michael Dell will take majority control of the company.
