Dell Nabs EMC for $67 Billion
Oct. 12, 2015
Dell Inc. today announced it has agreed to acquire storage and security giant EMC for $67 billion in what is the largest tech-only deal ever. Dell founder and CEO Michael Dell and his private equity co-owners Silver Lake and MSD Partners said VMware, the cloud virtualization unit of EMC will remain a publicly traded company. The deal, which the parties expect to close in mid-to-late 2016, will have implications for virtually all industries (including payments) leveraging mobile and cloud technology to secure networks, according to observers. Dell said the agreement creates "the world’s largest privately-controlled, integrated technology company" augmenting EMC’s enterprise capability with Dell’s flexibility to serve small and midsize companies.
"The combination of Dell and EMC creates an enterprise solutions powerhouse bringing our customers industry leading innovation across their entire technology environment," according to Dell. "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."
Joe Tucci, who reportedly has been trying to retire, will continue as chairman and chief executive officer of EMC until the transaction closes, after which Dell will assume that role for the combined companies. Dell said its headquarters will remain in Round Rock, Texas, and the headquarters of the combined enterprise systems business will be located in Hopkinton, Mass, EMC’s home.