Dell buys EMC in largest tech deal ever

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SAN FRANCISCO — Computer technology giant Dell and private-equity firm Silver Lake on Monday acquired data storage provider EMC for roughly $67 billion,
a $33.15-per-share deal that represents the largest in technology industry history.
The deal's $33.15 per-share cost represents a 28% premium above EMC's closing price on Oct. 7, when the news reports of the pending transaction first surfaced.
CompuDell is offering EMC shareholders about $24.05 a share in cash and $9.10 of a tracking stock tied to EMC's stake in VMware, which will remain a publicly traded company under the transaction terms.

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Along with the tracking stock, privately-owned Dell plans to finance the deal with new common equity from company founder, CEO and chairman Michael Dell, Silver Lake and other backers, plus new debt financing and cash on hand.
The transaction is expected to close between May and October of 2016. The combined firm will focus on paying down debt during the 18 to 24 months after the closing, Dell and other corporate officials said during a conference call after the announcement.
Dell will lead the company as chairman and CEO after the closing. Joe Tucci, EMC's veteran CEO, will remain as chairman and CEO of EMC until the closing, and no changes of other top executives are expected, officials said.
There are no immediate plans for layoffs related to the transaction, company officials said. The combined firm will have three technology hubs, in Austin, Texas, near where Dell is based, in Silicon Valley and in Massachusetts, EMC's base.
Shares of EMC (EMC) ended up 1.76% for the day at $28.35. Shares of VMware (VMW) closed down 8.11% at $72.27.
The deal represents a coup for Dell, who two years ago took the personal computer maker he founded private with financial backer Silver Lake in a $25 billion buyout. It also marks a major milestone in his march to reinvent Dell as an enterprise player focused on data storage and security amid a changing tech landscape.
"The combination of Dell and EMC will create the industry leader" in the $2 trillion information technology markets where they have complementary portfolio technologies and other resources, Dell said during the conference call. "This transaction also strengthens both companies in the increasingly competitive global marketplace."