Dell buying EMC to create giant tech company

Dell Inc. and EMC Corporation have signed a definitive agreement under which Dell, together with its owners, Michael S. Dell, founder, chairman and chief executive officer of Dell, MSD Partners and Silver Lake will acquire EMC Corporation, while maintaining VMware as a publicly-traded company.

The transaction creates a giant in the high-growth areas of the $2 trillion IT market with complementary product and solutions portfolios, sales teams and R&D investment strategies.

The merge combines two of the world’s largest technology franchises — with leadership positions in Servers, Storage, Virtualization and PCs — and brings together strong capabilities in the fastest growing areas of the industry, including Digital Transformation, Software Defined Data Center, Hybrid Cloud, Converged Infrastructure, Mobile and Security.

The combination of Dell and EMC provides the ability to address large and small customers’ rapidly changing critical IT needs. The company will offer customers a broad, end-to-end product portfolio spanning all key compute, networking and storage segments—both legacy and emerging—to address customers facing technology-driven disruption.

“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 center, converged infrastructure, hybrid cloud, mobile and security,” said Mr. Dell. “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.”

The total transaction would be valued at approximately $67 billion according to the company's release.