Computer magnate Dell has confirmed the takeover of EMC Corporation for $67bn (£44bn, €59bn), signing one of the biggest tech deals in history. The offer means EMC shareholders receive $24.05 per share in cash, while it values EMC overall at $33.15 per share.
Michael Dell, the founder and CEO of the computer giant, said the tie-up will create an "enterprise solutions powerhouse" as the company branches out from its stake in the PC market. He said: "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 centre, converged infrastructure, hybrid cloud, mobile and security."
Dell said its research and development investments and the fact that the company is privately owned, would allow it to focus on customer desire and be as innovative as possible. "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," Dell said.
The deal is a strategic move by Dell to battle falling demand for PCs as tablets and smartphones have taken market share. It will be granted access to EMC's data storage and partner VMware's cloud and software services.
"I'm tremendously proud of everything we've built at EMC – from humble beginnings as a Boston-based startup to a global, world-class technology company with an unyielding dedication to our customers," EMC chief executive Joe Tucci said.
"But the waves of change we now see in our industry are unprecedented and, to navigate this change, we must create a new company for a new era. I truly believe that the combination of EMC and Dell will prove to be a winning combination for our customers, employees, partners and shareholders."
Dell, previously listed as a Nasdaq 100 and S&P 500 company, became private again in October 2013, meaning EMC shareholders will effectively be bought out of the company. VMware will remain publicly listed.