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Dell buys EMC for a whopping $67 billion
Dell and data storage company EMC have signed a definitive agreement under which Dell, together with its owners, will acquire EMC Corporation, while maintaining VMware as a publicly-traded company.
Under the terms of the agreement, EMC shareholders will receive USD 24.05 per share in cash in addition to tracking stock linked to a portion of EMC’s economic interest in the VMware business, altogether the offer is USD 33.15 per share in cash and special stock. The total price-tag for the transaction is approximately USD 67 billion.
The EMC Board of Directors approved the merger agreement and intends to recommend that stockholders of EMC approve the agreement.
Following completion of the transaction, Michael Dell will lead the combined company as chairman and chief executive officer. Joe Tucci will continue as chairman and chief executive officer of EMC until the transaction closes. Dell’s headquarters will remain in Round Rock, Texas, and the headquarters of the combined enterprise systems business will be located in Hopkinton, Mass.
The transaction is expected to close in the second or third quarter of Dell’s fiscal year ending February 3, 2017.
