In the biggest tech deal in history, Dell will acquire EMC, a data storage company, for $67 billion. The deal was announced on Monday and will unite the two established companies to create a technology powerhouse.
The deal will allow Dell, a private company, to expand out of the personal computer market and tap into the more-lucrative market of enterprisedata storage and management.
Essentially, Dell is looking to revive IBM’s old business model: becoming a one-stop shop for corporations.
The historic deal puts EMC’s value at $33.15 a share. Dell will be paying out $24.05 for each share in cash, and give shareholders of EMC a special stock that will track the current share price in VMware, a virtual software provider.
In premarket trading, EMC shares jumped 3.9% to $29.08.
Michael Dell, chairman and CEO of the Dell, stated that the acquisition will help the company create an “unbelievable powerhouse.” The goal is to bring together technologies that complement each other and help customers meet the demands of a changing digital future.
The merger has already been approved by the EMC board, and they will recommend that shareholders approve the transaction as well. Michael Dell will remain as chairman and CEO of the combined companies.
“Michael Dell 2010” by mikeandryan – https://www.flickr.com/photos/49291777@N05/4540424707/. Licensed under CC BY 2.0 via Commons.