Dell has offered US$67bn to buy EMC in the biggest acquisition in the history of the IT industry. The deal will create a “premier end-to-end technology company”, Dell said in a statement.
Under the proposed deal, EMC shareholders will receive $33,15/share in a combination of cash and shares, linked to a portion of EMC’s economic interest in subsidiary VMWare, which will remain an independent and publicly traded company.
The combination of Dell and EMC will create the world’s largest privately controlled, integrated technology company,” Dell said in a statement before markets opened in the US on Monday.
“The company will be a leader in the extremely attractive high-growth areas of the $2 trillion IT market, with complementary product portfolios, sales teams and R&D investment strategies.
“The transaction combines two of the world’s greatest technology franchises with leadership positions in servers, storage, virtualisation and PCs and it brings together strong capabilities in the fastest growing areas of the industry, including digital transformation, software-defined data centres, hybrid cloud, converged infrastructure, mobile and security.”
The transaction will be financed through a combination of new shares from Michael Dell, MSD Partners, Silver Lake and Temasek, the issuance of tracking stock, as well as new debt financing and cash on hand.
Following completion of the transaction, Dell will lead the combined company as chairman and CEO. Joe Tucci will continue as chairman and CEO of EMC until the transaction closes. Dell’s headquarters will remain in Texas, and the headquarters of the combined enterprise systems business will be located in Massachusetts. — © 2015 NewsCentral Media
