Privately held company, Dell created history on October 12th when it announced the acquisition of data storage company, EMC corporation for $67 Billion USD to become the largest acquisition in history yet. This figure is a little over 3 times the amount Facebook paid for Whatsapp back in October 2014.
According to Dell’s official website, EMC corporation will remain a public limited company and each shareholder of the company will receive $24.05 in cash per share in addition to tracking stock linked to a portion of EMC’s economic interest in the VMware business.
The boards of both companies have already given a green light for the agreement. The rest lies in the hands of the shareholders and possibly the regulatory bodies to do the same. The deal is expected to be completed by Mid-2016.
HP had previously been in talks with EMC with the same aim Dell has but any kind of deal could not be thrashed out. Both HP and Dell are top PC manufacturers in the world but with the market seeing a steady decline, companies are already preparing to diversify into enterprise computing products.
Dell still has to come up with new services and products for a different clientele but in the end the company already has what it need to diversify into the digital data business solution. The deal is a win-win for both companies – Dell and EMC corporation but then there is HP which ended up with nothing but then in life you win some and lose some.
Source: Dell
