Dell has announced the completion of the acquisition of EMC Corporation, creating a new company, Dell Technologies that aims to provide essential infrastructure for organisations to build their digital future, transform IT and protect information
The new company formed after the acquisition is to be named Dell Technologies and aims to be a one-stop shop for information technology sold to business. According to Dell, with US$74bn in revenue, Dell Technologies will be the world’s largest privately controlled tech company and will serve 98 per cent of the Fortune 500 and comprises several market leading businesses.
As part of the deal, Dell purchased EMC and its Byzantine federation of wholly and partially owned subsidiaries, including cybersecurity firm RSA Security LLC, software-development company Pivotal Software Inc, cloud-software company Virtustream and virtualisation software vendor VMware, which will remain public. The deal will give current EMC shareholders a tracking stock for VMware shares.
The deal, announced 12 October, took almost 11 months to complete. Dell and its partner investment firm Silver Lake raised more than US$40bn in debt. The Wall Street Journal reported that the company also brought in more than US$5bn through agreements to sell its IT-services business and software divisions.
Commenting on the acquisition, Dell Technologies chairman and CEO Michael Dell said, "We are at the dawn of the next industrial revolution. Our world is becoming more intelligent and more connected by the minute, and ultimately will become intertwined with a vast Internet of Things, paving the way for our customers to do incredible things. This is why we created Dell Technologies. We have the products, services, talent and global scale to be a catalyst for change and guide customers, large and small, on their digital journey."