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Computing giant Dell has just announced what looks set to be the biggest acquisition in tech history.
The Texas-based company on Monday confirmed that it had acquired EMC for a massive US$67-billion.
Unless you’re a data center nerd, chances are you probably haven’t heard of EMC, but it actually provides the physical data storage for some of the biggest companies in tech today.
The acquisition eclipses that of the previous largest, set earlier this year when Avago acquired chipset maker Broadcom for US$37-billion back in May.
“We’re continuing to evolve the company into the most relevant areas where IT is moving,” Dell’s founder and chief executive Michael Dell told The New York Times. “This deal just accelerates that.”
The deal will see Dell massively increase its presence in the data storage market, something that will become increasingly important as PC sales continue to plummet.
“The combination of Dell and EMC creates an enterprise solutions powerhouse bringing our customers industry leading innovation across their entire technology environment. Our new company will be exceptionally well-positioned for growth in the most strategic areas of next generation IT including digital transformation, software-defined data center, converged infrastructure, hybrid cloud, mobile and security,” Dell said in a press release issued by the company.
“Our investments in R&D and innovation along with our privately-controlled structure will give us unmatched scale, strength and flexibility, deepening our relationships with customers of all sizes. I am incredibly excited to partner with the EMC, VMware, Pivotal, VCE, RSA and Virtustream teams and am personally committed to the success of our new company, our customers and partners.”
While the deal is worth US$67-billion, it’s by no means a straightforward cash acquisition. According to the Verge the deal includes, among other things, a “go shop” provision, which allows EMC shareholders to consider rival bids.
From EMC’s side, the buyout could prove beneficial in-as-much as it provides shelter from the volatilities of the stock market — something which Dell itself appears to have benefited from since going private a few years ago.
“I’m tremendously proud of everything we’ve 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,” said Joe Tucci, chairman and chief executive officer of EMC.
“But the waves of change we now see in our industry are unprecedented and, to navigate this change, we must create a new company for a new era. I truly believe that the combination of EMC and Dell will prove to be a winning combination for our customers, employees, partners and shareholders.”