Dell to buy storage rival EMC in a deal worth $67 billion

Dell logoDell 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.

Dell to buy storage rival EMC in a deal worth $67 billion

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.

Source: Ars Technica

Tags: Dell

Add comment

Your name:
Sign in with:
Your comment:

Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party

Last news

You can use a security key instead of having a code sent to your phone
Adobe says that the AI can now achieve the intended result in seconds
A new security protocol replacing the aging WPA2
Download and install at your own risk, of course
More iPhone parts likely to be produced by Samsung
Starting on Friday, video views on YouTube will start to be counted by the Official Charts Company
LG has already announced two new V-series members in 2018
The method is blocked and the hack doesn’t work, it adds
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /

News Archive



Do you use microSD card with your phone?
or leave your own version in comments (11)