The computer company Dell Inc has announced that it is uniting with data storage company EMC Corp to create an enterprise tech powerhouse.
This $67 billion deal aims to help Dell diversify away from the falling demand in the personal-computer market into data storage, which has been identified as a key growth area.
As part of this deal, EMC shareholders will receive $33.15 per share, with Dell paying $24.05 per share in cash whilst also giving EMC shareholders a special stock that tracks the share price in virtual software provider VMWare Inc.
According to Michael Dell, Dell’s chairman and CEO, this record-breaking tech deal is “all about bringing together complementary technologies and helping our customers address the challenges and opportunities that this digital future is creating.”
Whilst this merger is set to be costly and complex to execute, Joe Tucci the head of EMC, defends the deal stating; “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”.
News of the deal was first leaked in the Wall Street Journal last week and is expected to close between March and October of 2016.
Safiya Bashir on 12/10/2015