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Dell to finalise EMC acquisition today for $53bn

There has been more news on the Dell acquiring EMC front, with sources saying that a deal has been finalised and could be announced later today.

As we reported last week, this is going to be a massive purchase, and the latest figure to be pinned on the value of EMC is $53 billion (£34 billion), which would make it the biggest single acquisition ever witnessed in the tech world.

The Financial Times reports that EMC has agreed to an offer worth $33 per share, including $27 in cash for EMC shares with the rest delivered in fresh securities tied to the value of VMware (the purveyor of virtual machine software which EMC owns).

But there's a catch with the deal, as far as Dell is concerned, namely that EMC has managed to barter a "go-shop" clause, meaning that the company will have 60 days to solicit a better offer from other potential buyers before the Dell buyout becomes concrete.

Apparently this move has been made to placate Elliott Management, an investor that owns a major stake in EMC, and which may not be impressed with the size of Dell’s offer.

Other potentially interested parties that might want to snap up EMC include HP, IBM or Cisco.

If Dell secures the move, it would obviously further the company’s cause in terms of the cloud and enterprise services, as the firm looks to rely less on its traditional PC business.

Dell is still struggling somewhat in the face of the decline in PC sales in recent times, and apparently the company is still saddled with a lot of debt, some $11.7 billion (£7.6 billion) according to figures which were recently revealed.

Darren Allan
Darren Allan

Darran has over 25 years of experience in digital and magazine publishing as a writer and editor. He's also an author, having co-written a novel published by Little, Brown (Hachette UK). He currently writes news, features and buying guides for TechRadar, and occasionally other Future websites such as T3 or Creative Bloq and he's a copy editor for TechRadar Pro. Darrran has written for a large number of tech and gaming websites/magazines in the past, including Web User and ComputerActive. He has also worked at IDG Media, having been the Editor of PC Games Solutions and the Deputy Editor of PC Home.