The Biggest Deal In Tech History Was Sealed Today

Dell has acquired EMC for a whopping $67 billion, a Brobdingnagian deal regarded as the biggest takeover in the technology industry.

The acquisition would help Dell diversify amid a stagnant personal-computer market and give it greater scale in the more profitable and faster-growing market for managing and storing data, according to Reuters.

However, there was no sign of a “go-shop” clause as had been previously rumoured – which would have allowed EMC to attempt to solicit a better offer for a period of two months – perhaps because Dell was prepared to up the amount it was paying.

VMware, a cloud computing company in which EMC owns 80 percent, will remain as a publicly-traded company. Michael Dell will become chairman and CEO of the combined company, though Tucci will stay on till it closes, which is expected in the second or third quarter of Dell’s fiscal year ending February, 2017 – so, sometime in August or November of 2016.

Joe Tucci the CEO and Chairman at EMC said this deal is economically correct for both companies. “This landmark transaction will create a powerhouse with leading franchises across enterprise IT”, they said.

The deal had been rumored for weeks. Because of VMware’s strength in the compute virtualization market, it is turning into an important vendor in building private cloud management software – with a product named vCenter.

Dell’s huge bet on EMC signals the company – which went private in 2013 following a long battle with activist investor Carl Icahn – is seeking out a giant slice of that enterprise pie.

News of the deal first leaked last week.

“Speculation has been somewhat scary for them, but Dell is a trusted player and a low-risk “soft landing” for these customers”, he said.

The Dell SecureWorks and EMC RSA stuff should come together without too many issues.

The analysts said that Dell was weak on storage, while EMC will give it the full portfolio it needs in order to compete with Cisco, HP, IBM, as well as with an expanding threat from Huawei. Based on VMW’s intraday price near ~$72, we estimate EMC shareholders are in line to receive approximately $32, or one dollar less than the $33.15/share headline number. Dell Inc., headquartered in Round Rock, announced Monday that it will buy EMC Corp. I am incredibly pleased that Michael and I have agreed that the headquarters of our combined Enterprise Systems Business will remain in Hopkinton, Massachusetts.

EMC’s board has approved the merger agreement and intends to recommend that the company’s stockholders approve the deal. It still needs approval from EMC shareholders.