Dell Has Confirmed The Largest Acquisition In Tech History – See All The Details Here
Who would have thought that Dell, the American tech company would be making history today by making the largest acquisition in tech history? Let us see what prize the firm has netted today.
Dell Has Acquired Data Storage Company EMC For A Grand Total Of $67 billion USD – The Largest Acquisition In Tech History
According to the official page of Dell, the American firm and data storage company, EMC Corporation had announced that they have signed a definitive agreement under which Dell, along with its owners which includes Michael S. Dell (founder, chairman and Chief Executive Officer), MSD Partners and Silver Lake (global leader in technology investing), will acquire EMC Corporation. The agreement details stated that VMware would remain as a publicly-traded company.
According to other details, EMC shareholders will receive $24.05 per share in cash, along with tracking stock linked to a portion of EMC’s economic interest in the VMware business. The source mentions that the estimated number of EMC shares outstanding at the close of the transaction; EMC shareholders will be expected to receive about 0.111 shares of new tracking stock for each EMC share. Now, Dell might have made history by shelling out a ton of cash in making this acquisition, but what was it really for?
Well, for one thing, there was an earlier agreement involving HP and EMC, and fortunately for Dell, the deal fell through, most likely because the company’s rival was unable to come to a monetary agreement. In order to cash in the opportunity before HP’s board contacted EMC’s again in order to renegotiate, Dell struck when the iron was hot, literally. While the EMC Board of Directors have approved the merger agreement, they still have to convince the stockholders of EMC to approve the agreement as well.
The primary reason why EMC was acquired is because now, Dell will become one of the largest providers of enterprise computing products, and at the same time, EMC will continue with its digital storage business. In addition to being the 3rd largest manufacturer of PCs in the world, Dell will also be able to provide more solutions to clients. With the PC market declining in favor of mobile products ranging from smartphones and tablets, the company decided to branch out to a lucrative category, even if it meant that it would have to spend a ludicrous amount of cash in order to make this happen.
Now that the $67 billion USD acquisition has been confirmed, HP will most likely fall into a much deeper hole, and to add insult to injury, the company was already contemplating on breaking up its businesses in order to deal with a rapidly changing market environment. What did you guys think? Sure, Dell might have created history, but will it benefit the company in the long run? Let us know your thoughts.