Dell is buying data storage company EMC for approximately US $67 billion.
The major tech merger was announced Monday. According to EMC’s board of directors, shareholders of EMC Corp. will receive about $33.15 per share, which includes cash plus tracking stock linked to part of EMC’s economic interest in the VMware business, a 19 per cent premium to Friday closing price of $27.86.
VMware Inc., a subsidiary of EMC, will stay an independent, publicly traded company.
The acquisition comes amid slow home computer sales. The merger would combine Dell’s experience in product and small business sales with EMC’s expertise with large enterprises. According to the companies, the combined business will create the world’s biggest privately held integrated technology company.
“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 centre, converged infrastructure, hybrid cloud, mobile and security,” Michael Dell said in a written statement.
Dell will serve as chairman and CEO of the combined company. Joe Tucci, chairman and CEO of EMC, will remain in those roles until the deal closes in the second or third quarter of Dell’s fiscal year, ending Feb. 3, 2017. The deal still needs approval from EMC shareholders.
Dell Inc.’s headquarters will stay in Round Rock, Texas, with the combined enterprise systems business headquarters in Hopkinton, Massachusetts, where EMC is based.