Dell will acquire EMC for $67 billion
EMC has reported declining profits in July, and its core storage division has seen revenue growth grind to a halt; it grew just 2 percent between 2013 and 2014, compared to 16 percent between 2010 and 2011. Activist hedge fund Elliott Management Corp., which has a 2 percent stake in EMC, has also pressured the company to sell its 80 percent stake in VMware.
Dell was taken private in 2013 in a $25 billion (£16 billion) leveraged buyout by founder Michael Dell and private equity firm Silver Lake. Even before the buyout, it had been increasingly positioning itself as an enterprise-oriented firm, expanding its server, storage, and security offerings in a bid to move away from the slim margins of the PC business. Merging with some or all of EMC would be consistent with this shift.
EMC stockholders are to receive approximately $33.15 per share in a combination of cash as well as tracking stock linked to a portion of EMC’s economic interest in the VMware business.
VMware will remain an independent, publicly-traded company.
http://arstechnica.co.uk/information-technology/2015/10/report-dell-in-merger-talks-with-storage-giant-emc/
http://www.dell.com/learn/us/en/uscorp1/secure/2015-10-12-dell-emc-transaction
Dell was taken private in 2013 in a $25 billion (£16 billion) leveraged buyout by founder Michael Dell and private equity firm Silver Lake. Even before the buyout, it had been increasingly positioning itself as an enterprise-oriented firm, expanding its server, storage, and security offerings in a bid to move away from the slim margins of the PC business. Merging with some or all of EMC would be consistent with this shift.
EMC stockholders are to receive approximately $33.15 per share in a combination of cash as well as tracking stock linked to a portion of EMC’s economic interest in the VMware business.
VMware will remain an independent, publicly-traded company.
http://arstechnica.co.uk/information-technology/2015/10/report-dell-in-merger-talks-with-storage-giant-emc/
http://www.dell.com/learn/us/en/uscorp1/secure/2015-10-12-dell-emc-transaction