TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentralTechCentral
    NEWSLETTER
    • News

      Google’s giant Equiano Internet cable has landed in South Africa

      8 August 2022

      The African tech start-ups eyeing global markets

      8 August 2022

      Karpowership loses bid to overturn environmental ruling

      8 August 2022

      New app launched to tackle potholes in South Africa

      8 August 2022

      Rogue database felled Capitec in its worst-ever IT outage

      7 August 2022
    • World

      Nvidia issues profit warning on slump in demand for graphics cards

      8 August 2022

      Buterin: Mining on Ethereum Classic won’t affect Merge

      8 August 2022

      Musk challenges Twitter CEO to a public debate

      7 August 2022

      Amazon splashes $1.7-billion on Roomba maker iRobot

      5 August 2022

      Nigeria asks Google to block banned groups from YouTube

      5 August 2022
    • In-depth

      The length of Earth’s days has been increasing – and no one knows why

      7 August 2022

      As Facebook fades, the Mad Men of advertising stage a comeback

      2 August 2022

      Crypto breaks the rules. That’s the point

      27 July 2022

      E-mail scams are getting chillingly personal

      17 July 2022

      Webb telescope’s stunning images of the cosmos

      12 July 2022
    • Podcasts

      How South Africa can woo more women into tech

      4 August 2022

      Book and check-in via WhatsApp? FlySafair is on it

      28 July 2022

      Interview: Why Dell’s next-gen PowerEdge servers change the game

      28 July 2022

      Demystifying the complexity of AI – fact vs fiction

      6 July 2022

      How your organisation can triage its information security risk

      22 June 2022
    • Opinion

      SIU seeks to set aside R215-million IT tender

      19 July 2022

      No reason South Africa should have a shortage of electricity: Ramaphosa

      11 July 2022

      Ntshavheni’s bias against the private sector

      8 July 2022

      South Africa can no longer rely on Eskom alone

      4 July 2022

      Has South Africa’s advertising industry lost its way?

      21 June 2022
    • Company Hubs
      • 1-grid
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»Top»Dell completes biggest-ever IT acquisition

    Dell completes biggest-ever IT acquisition

    Top By Agency Staff7 September 2016
    Facebook Twitter LinkedIn WhatsApp Telegram Email
    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
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleMerc equips van with robotic carrier pigeons
    Next Article New Apple Watch adds GPS support

    Related Posts

    Nvidia issues profit warning on slump in demand for graphics cards

    8 August 2022

    Buterin: Mining on Ethereum Classic won’t affect Merge

    8 August 2022

    Musk challenges Twitter CEO to a public debate

    7 August 2022
    Add A Comment

    Comments are closed.

    Promoted

    You don’t need a call centre to take advantage of call centre technology

    5 August 2022

    Black man, you are still on your own

    5 August 2022

    UC&C interoperability offers businesses operational cost relief in tough times

    4 August 2022
    Opinion

    SIU seeks to set aside R215-million IT tender

    19 July 2022

    No reason South Africa should have a shortage of electricity: Ramaphosa

    11 July 2022

    Ntshavheni’s bias against the private sector

    8 July 2022

    Subscribe to Updates

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

    © 2009 - 2022 NewsCentral Media

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