From CRN: Dell has acquired EMC in a $67 billion deal that transforms the onetime PC maker into a $90 billion computing powerhouse with its sights set on dominating the enterprise IT market.
The deal -- the largest in the history of the IT business -- creates a new world order in the intensely competitive enterprise computing market. With the deal, Dell instantly becomes an enterprise superpower with a prominent position in nearly every key enterprise technology segment, including servers, storage, virtualization, networking, cloud computing services, security, big data and IT services.
"This is a major pendulum swing in the enterprise IT market to Dell," said Bob Venero, CEO of Holbrook, N.Y.-based solution provider Future Tech, No. 232 on the CRN 2015 Solution Provider 500. "This makes Dell the predominant enterprise computing company for customers and partners. [Dell Founder and CEO] Michael [Dell] was determined to make Dell the enterprise computing market leader, and a merger with EMC and VMware was the quickest way to get there." Dell, Round Rock, Texas, will offer EMC shareholders $33.15 per share in a deal that includes EMC subsidiary VMware as a tracking stock that amounts to about $9 per share. The deal includes $40 billion in financing from private equity players, including private equity giant Silver Lake Management.
The acquisition comes only two years after Michael Dell, along with Silver Lake, pulled off one of the largest technology leveraged buyouts in history -- a near-$25 billion deal to take the company he founded in his college dorm room private.
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