Dell will probably become one of the largest enterprise technology firms, due to an agreement announced these days. So, Dell will acquire EMC at the price of 67 billion dollars in cash and stock. This is probably one of the largest-ever technology mergers.
This acquisition is believed to have involved more than 50 confidential meetings in “hotels, private homes and even suburban towns across the country”, drawing in some of the top bankers, including Jamie Dimon of JPMorgan Chase, but also Mr. Tucci and Michael S. Dell.
This deal is without a doubt the largest tech deal of all time, so there is no wonder that it has been claimed that the talks between the two companies have been conducted directly between CEOs EMC’s Joe Tucci and Michael Dell.
After this transaction, all the data storage and VMware will be held by Dell. VMware is without a doubt EMC’s most important business, because this known virtualization software will allow the company to run multiple computer systems on a single computer server. This transaction is believed to help Dell compete against IBM, Cisco Systems and HP. Analysts said that the deal with provide the two companies much larger business opportunities and unique possibilities that none of them would have achieved separately.
“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,” declared Dell founder, Michael Dell.
It is quite well known that EMC’s business hasn’t gone so well in the past few years, because the cost of data storage has fallen and most of its value stays in its 81 percent share of VMware. However, under the terms of the deal, this software will remain a publicly traded company.
To be added that under the new deal, Joe Tucci, EMC CEO will continue as a chairman and chief executive of EMC until the transaction closes. After that, Michael Dell will take over as a chairman and CEO of the combined company. How would this deal function and how successful the merged company will become is very interesting to discover in the coming months.