Acquisition expands PC maker into storage
Dell confirms biggest ever tech deal with $67bn EMC acquisition
The combination will help Dell develop beyond the low-growth personal computer market and a big stake in the expanding data storage sector. EMC has a market capitalisation of $54bn.
Michael Dell, who will lead the combined company as chairman and chief executive, said: “The combination of Dell and EMC creates an enterprise solutions powerhouse.”
EMC’s board will recommend the deal which looks unlikely to be challenged by other potential suitors such as IBM, Cisco Systems and Hewlett-Packard.
Daily Business first reported rumours of the deal a week ago (above) following a sharp rise in EMC’s share price.
Michael Dell, who created the eponymous company in 1984, has been trying to transform the company into a complete provider of enterprise computing services like HP or IBM.
“We have been able to grow even though the (PC) market is shrinking and of course our business goes well beyond the device into data centre, software, services and security,” he said days before the speculation emerged.