Dell confirms $67bn EMC buyout
12 October 2015 | 0
Dell is acquiring cloud storage giant EMC in a deal worth $67 billion.
The deal is the largest of its kind for a technology company, to date.
Based on reports last week from Bloomberg and the Wall Street Journal citing unnamed sources it was expected that Dell and EMC were on the verge of announcing some kind of agreement – mostly likely a merger worth about $30 billion.
The acquisition reduces the number of vendors capable of supplying end-to-end infrastructure solutions to a handful of brands like HP, IBM and Cisco.
“The combination of Dell and EMC creates an enterprise solutions powerhouse bringing our customers industry leading innovation across their entire technology environment. Our new company will be exceptionally well-positioned for growth in the most strategic areas of next generation IT including digital transformation, software-defined data center, converged infrastructure, hybrid cloud, mobile and security,” said Dell founder and president Michael Dell in a statement issued today. “Our investments in R&D and innovation along with our privately-controlled structure will give us unmatched scale, strength and flexibility, deepening our relationships with customers of all sizes. I am incredibly excited to partner with the EMC, VMware, Pivotal, VCE, RSA and Virtustream teams and am personally committed to the success of our new company, our customers and partners.”
Under the deal VMware – of which EMC has an 80% stake – will remain a publicly-traded company.
Michael Dell will lead the combined company as chairman and chief executive officer with EMC chairman and chief executive officer Joe Tucci continuing in his position until the transaction closes. Dell’s headquarters will remain in Round Rock, Texas, and the headquarters of the combined enterprise systems business will be located in Hopkinton, Massachusetts.
The acquisition is expected to be passed by share holders and regulatory hurdles by October 2016.
Dell and EMC maintain significant operations in Ireland, employing over almost 4,000 between them.