Dell has announced that it is going to take over data centre giant, EMC in a massive $67 billion acquisition deal, the largest ever in the history of the tech industry so far. EMC has apparently agreed to the sale price, which is worth around $33.15 per share, though some of the finer details are a bit complicated. According to reports, the planned takeover comes with a provision that allows EMC to consider bids from rival firms as a way of re-assuring investors that they are getting the best value out of the sale.
Dell confirmed the move this morning, also announcing that it will be partnering with private equity firm, Silver Lake, for the takeover.
According to Dell’s own post on the matter, this will bring together the industry’s leading innovators in the data centre field. This deal will also have the added benefit of turning Dell in to an “enterprise powerhouse”, making this a pretty major move.
For years, a significant chunk of Dell’s business has relied on the sales of PCs, though it has been moving in to the enterprise sector with new devices, like its upcoming Surface competing tablet. Now with EMC under its belt, Dell will have a much larger presence in enterprise, cloud computing and data centre business, Dell will also be acquiring EMC’s 81 per cent stake in VMWare, which accounts for a large portion of the company’s value.
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KitGuru Says: Dell went private around two years ago in order to reorganize its business without pressure from public investors. Now the company is in a position to make the largest acquisition in the tech industry to date.