Dell and the investment firm Silver Lake, its financial backer, are betting that a huge acquisition will help one of the best-known names in the industry keep up with the rapidly changing technology industry.
Under the terms of the deal, Dell will pay $33.15 per EMC share, which includes cash plus tracking stock linked to part of EMC’s economic interest in VMware, a publicly traded business. The Dell founder and chief executive, Michael S. Dell will lead the combined company as chairman and chief executive.
“The combination of Dell and EMC creates an enterprise solutions powerhouse bringing our customers industry-leading innovation across their entire technology environment,” Mr. Dell said. “Our new company will be exceptionally well-positioned for growth in the most strategic areas of next-generation I.T.”
For the last two years, since taking the company private, Mr. Dell and Silver Lake have been trying to help it adapt to a changed tech landscape.
Buying EMC brings Dell one of the biggest names in computer data storage, adding to existing offerings like network servers, corporate software and mobile devices.
The deal, which needs approval from EMC shareholders and will be one of the biggest takeovers in the history of the tech industry, is expected to close next year.
“I’m tremendously proud of everything we’ve built at EMC — from humble beginnings as a Boston-based start-up to a global, world-class technology company with an unyielding dedication to our customers,” said Joe Tucci, chairman and chief executive of EMC. “But the waves of change we now see in our industry are unprecedented and, to navigate this change, we must create a new company for a new era. I truly believe that the combination of EMC and Dell will prove to be a winning combination for our customers, employees, partners and shareholders.”Photo
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