Dell buys EMC for $67 billion

The closing of the historic operation between both companies is scheduled for September 7. The new company will begin operating as Dell Technologies upon closing of the transaction.

Dell, the world's third largest computer manufacturer, is preparing its assault on the mass management and storage business with the purchase of EMC. Amid falling global PC demand, Dell and EMC have announced their intention to close the transaction for the merger of both companies on Wednesday, September 7, 2016. Dell Technologies, the name of the new combined company, will begin operations immediately after the closing of the transaction.

This operation, which is carried out after the regulatory approval of the operation between Dell and EMC by the Ministry of Commerce of China (MOFCOM), has been estimated at 67 billion dollars. The offer corresponds to $33.15 per share in cash and one special share.

Dell will pay $24.05 per share and the remainder in a special share that matches the value of a portion of EMC's economic interest in VMware, a software company in which EMC has a majority stake.

The transaction will be financed through a combination of new shares from Michael Dell, MSD Partners, Silver Lake and Temasek Holdings, in addition to the issuance of the special share, new debt and cash on hand.

Michael Dell, who will lead the merged company as president and CEO, said that “the combination of Dell and EMC creates a foundation for enterprise technology solutions.” Dell has expressed assurance that after the purchase its company will position itself as a much stronger player in key areas such as data center-defined software, converged infrastructure, hybrid cloud and security, competing head-to-head with giants such as HPE, IBM or Cisco Systems.