Dell has confirmed that it has signed a "definitive agreement" to purchase EMC for the price of $67 billion (£44 billion).
This is no surprise, and as we reported earlier a deal was expected to be finalised before the day was out, although previous speculation had pinned a slightly lesser price tag on EMC – namely $53 billion (£34 billion).
However, there was no sign of a “go-shop” clause as had been previously rumoured – which would have allowed EMC to attempt to solicit a better offer for a period of two months – perhaps because Dell was prepared to up the amount it was paying.
At any rate, this is one mammoth acquisition, and the biggest the tech industry has ever seen. Of course, it is still subject to regulatory approval, as ever.
The deal will see EMC shareholders receive $33.15 for every share in the company.
Michael Dell commented: “The combination of Dell and EMC creates an enterprise solutions powerhouse bringing our customers industry leading innovation across their entire technology environment.
“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 centre, converged infrastructure, hybrid cloud, mobile and security.
“Our investments in R&D and innovation along with our privately-controlled structure will give us unmatched scale, strength and flexibility, deepening our relationships with customers of all sizes. I am incredibly excited to partner with the EMC, VMware, Pivotal, VCE, RSA and Virtustream teams and am personally committed to the success of our new company, our customers and partners.”
Joe Tucci, Chairman of the Board of Directors and CEO of EMC, added: “The coming together of EMC and Dell will create a powerhouse in the technology industry with more than $80bn in revenue. The combined company will be a leader in a number of the most attractive high-growth areas of the $2 trillion information technology market.”