Dell is buying storage company EMC for about $67 billion. The combined company will be led by Michael Dell, founder, chairman, and CEO of Dell.
EMC shareholders will receive about $33.15 per share, a premium of about 28 percent over the closing price on October 7 before the rumors came out. This will be made up of a mix of stock and cash: $24.05 per share in cash, and the remainder in tracking stock. This tracking stock is tied to the value of EMC's 80 percent holding in VMware.
Financing for the deal will be a mix of equity from Michael Dell, his investment vehicle MSD Partners, investment firm Silver Lake, and Singapore state-owned investment company Temasek Holdings, along with debt financing, cash on hand, and the VMware tracking stock. Silver Lake helped finance Michael Dell's takeover of his namesake company in 2013 which took it back into private ownership.
Ожидается, что сделка состоится с мая по октябрь 2016 года.
EMC's storage system business will be a natural extension to Dell's server business—albeit with no small amount of overlap with Dell's existing storage products, which in many cases are positioned as direct competitors to EMC's offerings. According to Bloomberg, EMC's share of the storage market is 21 percent, around double Dell's share. EMC has been under pressure from shareholders to do something to re-ignite growth, as interest in its traditional storage products has faltered, with revenue increasing by just two percent last year. It has introduced new growth products, such as arrays of flash memory, but these have not been enough to lift overall revenue.