Dell, EMC to end historic merger talks Sept. 7

Dell Inc. and EMC Corp. on Wednesday announced that they intend to close the transaction to merge Dell and EMC on Wednesday, September 7, 2016. Dell Technologies, the name of the new merged company, will begin operations immediately after the close of transaction.

This announcement followed regulatory approval of the Dell and EMC transaction by China’s Ministry of Commerce (MOFCOM), which has granted clearance for the companies’ proposed combination. MOFCOM approval was the final regulatory condition to closing the transaction. EMC shareholders approved the transaction on July 19, with approximately 98 percent of voting EMC shareholders casting their votes in favour of the merger, representing approximately 74 percent of EMC’s outstanding common stock.

“This is an historic moment for both Dell and EMC. Combined, we will be exceptionally well-positioned for growth in the most strategic areas of next generation IT including digital transformation, software-defined data centre, converged infrastructure, hybrid cloud, mobile and security. Our investments in R&D and innovation, along with our 140,000 team members around the world, will give us unmatched scale, strength and flexibility, deepening our relationships with customers of all sizes,” said Michael Dell, chairman and CEO of Dell Technologies.

“I am proud of everything we have built at EMC – from humble beginnings as a Boston-based startup to a global, world-class technology company with an unyielding dedication to our customers. The combination of Dell and EMC creates a new powerhouse in the industry – providing the essential technology for the next era in IT,” said Joe Tucci, chairman and chief executive officer of EMC.

At the close of the transaction, EMC shareholders will receive $24.05 per share in cash, in addition to a newly issued 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 the close of the transaction, EMC shareholders are expected to receive approximately 0.111 shares of new tracking stock for each EMC share.

Once the transaction is concluded, EMC shares under the ticker symbol ‘EMC’ will be suspended from trading on the New York Stock Exchange. Shares of the tracking stock, trading under the ticker symbol ‘DVMT’, are expected to begin trading on the New York Stock Exchange on September 7.

Dell Technologies is an American privately owned multinational computer technology company based in Round Rock, Texas, United States, that develops, sells, repairs, and supports computers and related products and services.


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