Dell, EMC complete merger; form world’s largest privately-controlled tech company
Dell Technologies on Friday announced completion of the acquisition of EMC Corporation in a deal worth $74 billion, thereby creating a unique family of businesses that provides the essential infrastructure for organizations to build their digital future, transform IT and protect information.
The new market leader has an expansive technology portfolio that solves complex problems for customers in the industry’s fast-growing areas of hybrid cloud, software-defined data centre, converged infrastructure, platform-as-a-service, data analytics, mobility and cybersecurity.
Dell Technologies serves 98 percent of the Fortune 500 and comprises several market leading businesses with the Dell client solutions business and the Dell EMC infrastructure solutions business being the two largest and most well-known.
Additionally, Dell Technologies contains Boomi, Pivotal, RSA, SecureWorks, Virtustream and VMware. This unique structure combines the focus and innovation of a startup with the global scale and service of a large enterprise. Dell Technologies’ scale will enable it to deliver more innovation and investment in R&D, sales and marketing, services and support and deliver more efficient and cost-effective solutions for customers.
Although, the company will publicly report its financial results, it is privately controlled, enabling it to better focus investments on its customer and partner ecosystem over the long term.
Speaking on the merger, chairman and CEO of Dell Technologies, Michael Dell, 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.”
Dell Technologies blends Dell’s go-to-market strength with small business and mid-market customers and EMC’s strength with large enterprises and stands as a market leader in many of the most important and high-growth areas of the $2 trillion information technology market, including positions as a “Leader” in 20 Gartner Magic Quadrants and a portfolio of more than 20,000 patents and applications.
As part of the announcement, the company unveiled its new branding.
When the transaction closed on September 7, 2016, EMC shareholders received $24.05 per share in cash 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. The value of the tracking stock may vary from the market price of VMware given the different characteristics and rights of the two stocks.
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