Other than VMware, EMC provides products and services in categories like information storage, archiving, backup & recovery, storage and content management, enterprise content management, security, cloud computing and data computing, all of which will now be Dell products.
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Dell said it would pay $24.05 per share in cash and the rest in a special stock that tracks the value of a portion of EMC’s economic interest in VMware Inc., the virtualisation software company majority-owned by EMC.
Dell Inc on Monday said it is buying EMC Corp, the world’s largest data-storage provider, for US$67 billion in a record tech tie-up to accelerate its move into the cloud and mobile market. VMare, a cloud and virtualization software company which became a subsidiary of EMC in 2004, will remain an independent, publically-traded company.
Silver Lake has already approached HP, Huawei, and Lenovo in a bid to strike a deal for the sale of its PC division, although it more hard now because any buyer will know Dell is desperate, Forbes reported.
Such a clause, though not unusual in merger agreements, shows how EMC Chief Executive Joseph Tucci is preparing to exhaust all arguments to convince the company’s shareholders that a deal with Dell is the best possible outcome for them.
The mega deal makes Dell the No. 3 player in the enterprise technology industry by revenue behind Hewlett-Packard and IBM.
The EMC board of directors has approved the merger and will recommend approval by shareholders.
THE world’s biggest ever technology deal is set to go ahead after Dell confirmed it would swallow up EMC for around $67bn (£44bn).
The deal is a major coup for company chairman and CEO Michael Dell, who two years ago took the personal computer maker he founded private with financial backer Silver Lake in a $25 billion buyout. The company had operations in India in October 2000 and has since scaled up its presence with the government sector accounting for a significant part of its business.
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EMC boss Joe Tucci said: “The waves of change we now see in our industry are unprecedented and, to navigate this change, we must create a new company for a new era”. It doesn’t appear that Dell CEO Michael Dell is just spinning hype when he talks about the synergies of the deal.
