With rumors floating for the past week or so that Dell might be making a move for EMC, Michael Dell confirmed today that his company has sealed the biggest deal in tech history today. Dell will acquire data storage maker EMC in a transaction that will create the largest “privately-controlled, integrated technology company.” Dell is going to pay $67 billion in cash and stock with EMC shareholders receiving close to $33.15 per share which includes $24.05 in cash alongside new shares tied to the value of VMware, a popular maker of data center solutions controlled by EMC.
This deal has been reached merely two years after Mr. Dell took the PC maker he founded private in a buyout worth $25 billion. Michael Dell will control the entire company, he will also retain majority control of VMware which is going to remain a publicly listed company.
The deal does have a go-shop provision for EMC which gives the company 60 days to seek a better deal from any other suitor, there are whispers that Microsoft and Cisco might be approached to see if they have an alternative bid to offer, but so far there hasn’t been any indication from either company that signals interest in EMC.
In a statement Michael Dell said that “Our investments in R&D and innovation along with our privately-controlled structure will give us unmatched scale, strength and flexibility, deepening our relationships with customers of all sizes,” adding that he is personally committed to the success of the new company, its customers and partners alike.
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