US PC maker Dell has confirmed it will take over data storage giant EMC in a deal that valued the data storage company at around $67 billion. The merger marks the largest-ever transaction in the technology sector.
Personal computer manufacturer Dell confirmed Monday it would buy EMC Corp. The transaction will be closed in the second or third quarter of Dell's fiscal year ending February 3, the company said.
The deal is valued at approximately $67 billion (59 billion euros), making it the biggest ever such acquisition in the technology sector.
EMC shareholders will receive about $33.15 per share, which includes cash plus tracking stock linked to part of EMC's economic interest in the VMware business.
Michael Dell (pictured above) will serve as chairman and CEO of the combined business. While Dell's headquarters will stay in Round Rock, Texas, the combined enterprise systems business HQ will be in Hopkinton, Massachusetts, where EMC is based.
Higher profit margins
The takeover will help Dell diversify its operations awayfrom the stagnant PC market.
The company is looking to attack the faster-growing and much more lucrative segment of managing and storing data for businesses.
Earlier media reports said EMC had asked for a special rider to be included in the merger which would allow it to solicit bids from other parties and pay a discounted breakup fee for Dell, if a deal with another company came about.
The reports had cited IBM, Cisco Systems and Hewlett-Packard as potential rivals, but the chances of them actually making a separate bid had widely been regarded as slim because of the huge transaction sum involved.
hg/cjc (Reuters, dpa)