By Emma Okonji
Dell Technologies has announced completion of the acquisition of EMC Corporation, creating a unique family of businesses that provides the essential infrastructure for organisations to build their digital future, transform Information Technology (IT) and protect their most important asset, information.
This combination creates a $74 billion market leader with an expansive technology portfolio that solves complex problems for customers in the industry’s fast-growing areas of hybrid cloud, software-defined data center, converged infrastructure, platform-as-a-service, data analytics, mobility and cybersecurity.
Dell Technologies serves 98 per cent of the Fortune 500 and comprises several market leading businesses. The two largest, and most well-known, are the Dell client solutions business and the Dell EMC infrastructure solutions business – both of which are supported by Dell EMC Services.
The unique structure combines the focus and innovation of a startup with the global scale and service of a large enterprise. Dell Technologies’ scale will enable it to deliver more innovation and investment in research and development (R&D), sales and marketing, services and support and deliver more efficient and cost-effective solutions for customers. Furthermore, while the company will publically report its financial results, it is privately controlled, enabling it to better focus investments on its customer and partner ecosystem over the long term.
According to the Chairman and CEO of Dell Technologies, Michael Dell, “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.”
Also commenting on the historic merger, Chairman and CEO, JPMorgan Chase, Jamie Dimon noted that financial services is one of the first-movers in embracing technology to better serve their customers. “As one of the world’s biggest users of Dell and EMC, we spend approximately $9 billion a year on technology, infrastructure, cloud computing, big data analytics and cybersecurity. I’m thrilled for Michael and the new company, and we are eager to see everything.”
When the transaction closed on September 7, 2016, EMC shareholders received $24.05 per share in cash in addition to tracking stock linked to a portion of EMC’s economic interest in the VMware business. Based on the estimated number of EMC shares outstanding at close, EMC shareholders received 0.11146 shares of new tracking stock for each EMC share. The value of the tracking stock may vary from the market price of VMware given the different characteristics and rights of the two stocks.