Dell to buy data storage firm EMC in $67bn deal

Computer giant Dell is buying data storage company EMC in a deal valued at about $67 billion (£43.6bn).

EMC is being bought by Dell in a deal worth about $67bn

Shareholders of EMC will receive about $33.15 per share, which includes cash plus tracking stock linked to part of EMC’s economic interest in the VMware business. That represents a 19 per cent premium to EMC’s Friday closing price of $27.86.

Cloud computing company VMware, a subsidiary of EMC, will stay an independent, publicly traded company.

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Since being taken private by founder Michael Dell in 2013, Dell has been investing in research and development and growing its software and services business as those in the technology industry continue to struggle with soft PC sales.

The companies said today that the combined business will create the world’s biggest privately held integrated technology company.

“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,” Michael Dell said.

He will serve as chairman and chief executive of the combined company, while Joe Tucci, chairman and chief executive of EMC, will remain in those roles until the deal is complete.

Dell’s headquarters will stay in Round Rock, Texas. The combined enterprise systems business headquarters will be in Hopkinton, Massachusetts, where EMC is based.

The deal, which was approved by EMC’s board, is targeted to close in the second or third quarter of Dell’s financial year ending 3 February 2017. It still needs approval from EMC shareholders.