PC maker Dell is ready to drop some serious cash on EMC in what's going to be the biggest tech company acquisition ever. Dell will be spending some US$67 billion on the deal and plans to leave EMC's crown jewel, VMware, as a publicly traded company.
Dell buying EMC, giving the money back to the shareholders
Dell has been looking for a way to boost its revenue in the declining PC market, and bringing EMC's cloud computing business under its wing is just the thing to do that, according to Mr. Dell. The buyout is also expected give EMC's shareholders the return on investment they've been hoping would come.
Not one to shirk from corporate speak, Mr. Dell offered up a quote for the occasion saying, "The combination of Dell and EMC creates an enterprise solutions powerhouse bringing our customers industry leading innovation across their entire technology environment."
Translated back to normal speak, Mr. Dell said he sees EMC's place in the cloud computing and storage space as an avenue to increase his company's revenue. The trick will be to grown EMC's business, which could be something of a challenge considering most of Dell's customers are smaller businesses. In contrast, EMC caters primarily to the enterprise market.
VMware's customers will likely breathe a sigh of relief knowing the services they rely on will stay independent of Dell.
The companies expect to complete the deal some time between May and October 2016, pending the usual regulatory approvals.