Monday, 12 October 2015

Dell to acquire EMC Corporation

In one of the mega acquisitions in the Global IT Space, PC maker Dell Inc. will acquire EMC Corporation for about $67 Billion to create the world largest privately controlled, integrated technology company. The record technology deal will unite two mature companies and will create an enterprise tech powerhouse.
The acquisition will help privately held Dell diversify away from a stagnant personal computer market and give it greater scale in the faster growing and more lucrative market for managing and storing data for enterprises. The combination of EMC and Dell will prove to be a winning combination for customers, employees, partners and shareholders.

The merger agreement includes a 60 day ‘go shop’ provision that allows EMC to solicit bids from other parties and pay a discounted breakup fee to Dell if a deal is made with another company. The deal will be financed through a combination of new equity from Dell Owners. VMware will remain an independent, publicly traded company. JP Morgan Chase and Co advised Dell and Silver Lake & provided financial alongside Credit Suisse Group AG, Barclays Plc., Bank of America and other companies. 

No comments: