Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Blue Label Telecoms to change its name as restructuring gathers pace

      11 July 2025

      Get your ID delivered like pizza – home affairs’ latest digital shake-up

      11 July 2025

      EFF vows to stop Starlink from launching in South Africa

      11 July 2025

      Apple plans product blitz to reignite growth

      11 July 2025

      Nissan doubles down on South Africa despite plant uncertainty

      11 July 2025
    • World

      Grok 4 arrives with bold claims and fresh controversy

      10 July 2025

      Bitcoin pushes higher into record territory

      10 July 2025

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025

      Grammarly acquires e-mail start-up Superhuman

      1 July 2025

      Apple considers ditching its own AI in Siri overhaul

      1 July 2025
    • In-depth

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025
    • TCS

      TCS+ | MVNX on the opportunities in South Africa’s booming MVNO market

      11 July 2025

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025

      TCS+ | First Distribution on the latest and greatest cloud technologies

      27 June 2025
    • Opinion

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Top » Dell completes biggest-ever IT acquisition

    Dell completes biggest-ever IT acquisition

    By Agency Staff7 September 2016
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Michael Dell
    Michael Dell

    Dell Technologies wrapped up the acquisition of EMC in the largest technology deal in history, positioning the company to use its size to invest in new areas and fend off competition from the cloud and other rivals.

    The combination creates a US$74bn (R1 trillion) business that serves 98% of Fortune 500 companies, Dell said in a statement on Wednesday. It also takes EMC out of the glare of the public markets as the company is privately controlled.

    The tie-up, valued at about $67bn when it was first announced almost a year ago, brings together the leading provider of key storage products and one of the top makers of servers and PCs as both companies grapple with rising interest in cloud-based services from rivals such as Amazon.com, Microsoft and Google.

    Dell Technologies plans to invest $4,5bn/year in research and development after cumulative investments of more than $12,7bn over the past three years, according to the company.

    “We’ve got the ability to innovate at scale and invest — not for next quarter, but we have the agility and speed of a start-up, but the scale and reach of the largest company in the industry,” Michael Dell, chairman and CEO of the company, said in an interview. “Being private gives us an ability to focus on our customers like no other competitor can.”

    Dell plans to invest in areas including products linked to the Internet of things — or the effort to connect various devices, from cars to refrigerators.

    “As you have this instrumentation and making everything intelligent — that’s a huge opportunity,” Dell said. “The PC and smartphone revolutions have reduced the cost of microelectronics to the point where these small computers, effectively, can be embedded in anything.”

    The new company has 140 000 employees. While Dell didn’t deny there could be job cuts, he said the tie-up was more about revenue growth.

    “We have more, what I would call, revenue synergies than cost synergies because of the complementary nature of the businesses; we’re not putting together businesses that are the same — and taking costs out,” he said, declining to give any estimate for layoffs. “There are some overlapping functions and that sort of thing — that’s not the primary feature of this, but there is some of that.”

    EMC shareholders will receive $24,05/share in cash and a tracking stock linked to a portion of EMC’s economic interest in VMware, its majority-owned software business. Shares of the tracking stock, which has the ticker “DVMT”, began trading on Wednesday.

    The merger comes a day after Dell Technologies reported its financial results for the quarter ended 29 July. Dell said it had revenue of $13,1bn from continuing operations, an increase of 1% from a year earlier. It also had operating income of $63m, reversing an operating loss in the previous year.  — (c) 2016 Bloomberg LP



    Dell Dell Technologies EMC Michael Dell VMware
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleMerc equips van with robotic carrier pigeons
    Next Article New Apple Watch adds GPS support

    Related Posts

    New MD for Dell South Africa

    18 June 2025

    Heads may roll in R90 000 laptops scandal

    6 May 2025

    Dell delivers new AI experiences to South African business

    8 November 2024
    Company News

    $125-trillion traded: Binance redefines global finance in just eight years

    11 July 2025

    NEC XON welcomes HPE acquisition of Juniper Networks

    11 July 2025

    LTE Cat 1 vs Cat 1 bis – what’s the difference?

    11 July 2025
    Opinion

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.