Dell announced Monday that the company will be acquiring the cloud computing giant EMC for $67 billion, making this the largest acquisition in the history of the technology industry. The two companies have been able to reach an agreement on the sale. It was learned that the two businesses have been in talk for at least a year.
EMC’s chief executive Joe Tucci reveals that the transaction is expected to close sometime in the middle of next year. Tucci will remain as EMC’s chief executive and chairman until the deal closes.
While commenting on this, Michael Dell, co-founder and chief executive of the company said, “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”.
Dell returned to run the company he founded in 2007 and took the company private again in 2013 with backing from Silver Lake Partners.
Dell and equity firm Silver Lake Partners issued a press release on Monday, saying that buying EMC, a major data storage company, broadens its attractiveness to corporate customers.
The stock market responded positively to this news. Shares of EMC went up by more than 3% as soon as the market opened. EMC investors will get about $33.15 for each share.
But according to the terms of the contract announced on Monday, EMC has the “Go-shop” provision that gives them the opportunity to seek out other buyers as well. Dell however remains confident that they will be able to match any offer that EMC receives.
Traditionally known as a personal PC-maker, Dell has in recent years set its ambitions on the business computing market, aiming to be a single source for companies trying to navigate a high-tech business world. The company is going big at a time, while older technology firms like Hewlett-Packard are paring down and focusing on becoming smaller and nimbler companies.