The deal is worth an industry record billion. Individually, the companies have leadership positions in key areas of the market, including servers, storage, virtualization and PCs.
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It will also bring together strong capabilities in the “hottest IT trends”, such as digital transformation, the software-defined data center, hybrid cloud, converged infrastructure, mobile, and security. In 2013 he took the company private in a $25bn buyout. “I think there are a few other companies in our industries that are maybe far better at reducing headcounts than we are”.
What makes this deal eye-catching, according to Techcrunch, is that Dell, with a valuation of around $25 billion, is the smaller one of the two – approximately half the size of EMC.
Michael Dell, chief executive of Dell Inc. “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”. He said the same about the EMC aspects of this move.
All of this at the very moment when we have completed our journey to create two new, focused companies.
Terence Liao (廖仁祥), general manager of Dell’s Taiwan branch, said the acquisition of EMC would help Dell maintain its competitive edge among end-to-end solutions providers, which supply all the software and hardware requirements of a customer.
Shares of both EMC (NYSE:EMC) and VMware (NYSE:VMW) dropped Tuesday as investors and Wall Street struggled to understand the complexities of the deal in which privately held tech giant Dell would swallow up the two enterprise computing companies.
Per the deal, Dell will be paying EMC shareholders $24.05 per share in cash and approximately 0.111 shares of VMware tracking stock. If approval is received, Dell expects the deal to close between May and October 2016, it said. We caught up with Rob Enderle, principal analyst at the Enderle Group, to get his thoughts on the mega merger.
EMC is also planning to seek out other suitors, people familiar with the matter said.
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EMC said Dell had secured financing of up to $49.5 billion from banks to fund the roughly $67 billion deal announced on Monday, reports Reuters.
