This is possibly the largest acquisition to date. In what Dell is calling the “world’s largest privately-controlled, integrated technology company” the company has made a deal worth $67 billion to buy data storage giant EMC. There were a few rumors of a possible buy-out over the last few days, but now it seems the rumors are true. The deal represents the biggest tech-only acquisition in history
In accordance to the deal, EMC shareholders will receive $24.05 per share, and “tracking stock linked to a portion of EMC’s economic interest in the VMware business”. VMware as you may or may not know, is a company acquired by EMC 2004 that provides cloud and virtualization services. Till now, VMware was a separate, publicly trading company under EMC on the New York Stock Exchange (NYSE). But what now? Well, under Dell this will still continue.
Michael Dell, founder, chairman, and CEO of Dell explained how the combined forces of Dell and EMC would give birth to new technologies and innovations for all its customers.
EMC deals largely with delivering on-site storage technology to enterprises but is yet to fully utilize the Cloud. True enough they do have Virtustream, a public cloud and cloud software provider under their wing but in a roundabout manner, they sold off Syncplicity which is a file syncing and sharing service so their intentions are rather fuzzy at worst.
They do, on the other hand have a revenue of $24.4 billion for the year 2014, so they certainly know what they’re doing and any potential company wishing to acquire it will have to be ready to dish out some serious dough to grab their attention.
The deal basically brings together resources from both teams covering computers, storage, servers, and virtualization, to create an even larger enterprise. Dubbed the “largest tech-only acquisition in history”, this may be Dell’s opportunity to revitalize themselves from the fall in the PC market and step into the data storage market for enterprises.
No details have been finalized yet but the EMC board has approved the acquisition and will recommend that shareholders also agree to the terms. Things are going to get rather interesting in the coming days me thinks.