Dell acquires EMC for 67 billion dollars

Dell acquires EMC for 67 billion dollars

Dell is coming up in the tech industry.

In the last few days Dell have officially announced the acquisition of EMC, which happens to be the biggest tech takeover in history. Although previously Dell withdrew from the stock exchange, now it is becoming one of the biggest IT companies of all time.

Dell is offering EMC shareholders a total of $33.15 for their stock, in a deal that includes $24.05 a share in cash and 0.111 shares in a publicly traded vehicle that will track the value of EMC’s interest in VMWare, says Forbes. In the combined company Dell and its financial partners will be the owners of 70 percent. By combining Dell, Michael Dell is seeking to create an integrated IT giant that can compete directly with IBM and HP.

For this business, Dell needs a loan of 40 billion dollars. “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 in a statement Monday morning.

“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,” he added.

The combined company’s CEO and the president of Board of Directors will be Michael Dell. Joe Ducci, the current CEO of EMC will left his position. Tucci said, “I’m tremendously proud of everything we’ve built at EMC – from humble beginnings as a Boston-based startup to a global, world-class technology company with an unyielding dedication to our customers. 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.”

The Dell-EMC profit is estimated to be more than 80 billion dollars annually. Dell’s headquarters will remain in Round Rock, Texas, while EMC’s headquarters will remain in Hopkinton, Mass.

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