In a deal worth $67billion, the American multinational technology firm, Dell Inc. said has it has completed the acquisition of EMC Corporation, the largest technology merger in history.
The new company, to be named Dell Technologies will value $74 billion in annual revenue and a worldwide workforce of about 140,000. The company claimed merger would create a unique family of businesses that provides the essential infrastructure for organizations to build their digital future, transform IT and protect their most valuable asset, information.
Privately held Dell Inc. acquired not only EMC Corporation but that firm’s Federation of wholly and partially owned subsidiaries, including cyber security firm, RSA Security LLC, software-development company, Pivotal Software Inc., cloud-software company, Virtustream and virtualization software vendor VMware, which will remain public.
“With the supply chain that we have and the go-to-market strength and the scale, we feel very well positioned both in the new areas of technology and in the existing areas of technology today,” CEO, Dell Technologies, Michael Dell said.
Michael said “We are at the dawn of the next industrial revolution. Our world is becoming more intelligent and more connected by the minute, and ultimately will become intertwined with a vast Internet of Things, paving the way for our customers to do incredible things. This is why we created Dell Technologies.
We have the products, services, talent and global scale to be a catalyst for change and guide customers, large and small, on their digital journey.” He added.
EMC shareholders had received $24.05 per share in cash, following the closure of the deal yesterday. However, in addition to tracking stock linked to a portion of EMC’s economic interest in the VMware business. Based on the estimated number of EMC shares outstanding at close, EMC shareholders received 0.11146 shares of new tracking stock (NYSE: DVMT) for each EMC share.
“As one of the world’s biggest users of Dell and EMC, we spend approximately $9 billion a year on technology, infrastructure, cloud computing, big data analytics and cyber security. I’m thrilled for Michael and the new company, and we are eager to see everything they create in the future,” CEO, JPMorgan Chase, Jamie Dimon he said. “Financial services are one of the first-movers in embracing technology to serve their customers better,” he added.
In his views, Marc Benioff, CEO, Salesforce, said “Salesforce’s partnership with Dell and EMC has been instrumental in pushing innovation across the industry. Michael is an incredible visionary and one of the most outstanding leaders in our industry. He has been a fantastic partner contributing to our success. Now with Dell Technologies, he is once again reshaping the technology industry.”, Marc added.
