Dell Inc., together with its owners, Michael S. Dell, founder, chairman and chief executive officer, MSD Partners and Silver Lake, will acquire EMC Corporation, while maintaining its subsidiary – VMware – as a publicly-traded company.
The total transaction would be valued at approximately $67 billion. The deal is expected to be financed through a combination of new common equity from Michael S. Dell, MSD Partners, Silver Lake and Temasek, the issuance of tracking stock, as well as new debt financing and cash.
Mr. Dell and stockholders will own approximately 70% of the company’s common equity, excluding the tracking stock, similar to their pre-transaction ownership.
The combination of Dell and EMC aims to create the world’s largest privately-controlled, integrated technology company, which will be a leader in the $2 trillion information technology market with complementary product portfolios, sales teams and R&D investment strategies. The transaction combines leadership positions in servers, storage, virtualization and PCs and it brings together capabilities in digital transformation, software-defined data center, hybrid cloud, converged infrastructure, mobile and security areas.
Led by Joe Tucci, chairman and chief executive officer, EMC enables businesses and service providers to deliver IT as a service to store, manage, protect and analyze information in a more agile way.
Following the completion of the transaction, Mr. Dell will lead the combined company as chairman and chief executive officer. Dell’s headquarters will remain in Round Rock, Texas, and the headquarters of the combined enterprise systems business will be located in Hopkinton, Mass.
FinSMEs
12/10/2015