Dell and EMC today officially announced that they are set to close the transaction of their combination and kick-start their journey as Dell Technologies. In last October, Dell revealed the acquisition of EMC for a whopping $67 billion.
“This is a historic moment for both Dell and EMC,” said Michael Dell, chairman and CEO of Dell Technologies, in a statement. “Our investments in R&D and innovation, along with our 140,000 team members around the world, will give us unmatched scale, strength and flexibility, deepening our relationships with customers of all sizes.”
As a result of the new development, Dell will now hold not just EMC but its subsidiaries including RSA Security, Pivotal Software and VMware. All these entities will work under one roof at Dell Technologies and will majorly maintain operations in Hopkinton, Massachusetts, the original homeland of EMC.
“The combination of Dell and EMC creates a new powerhouse in the industry – providing the essential technology for the next era in IT,” said Joe Tucci, chairman and CEO of EMC.
Newly established Dell Technologies will focus on all the advanced IT avenues such as software-defined data centre, converged infrastructure, hybrid cloud, mobile and security. The new company would mainly be a saviour for both Dell and EMC.
“Dell EMC, along with the entire Dell Technologies family of businesses – including Pivotal, RSA, SecureWorks, Virtustream, and VMware – is positioned to help you transform your IT, your workforce, and your security, as well as your business. Together, we remove cost and complexity, make cutting-edge innovation available to more customers globally, and democratise technology for the benefit of everyone and every organisation,” Alok Ohrie, president and managing director, Dell India, wrote in an email to its customers.
EMC shareholders will receive $24.05 per share in addition to a newly issued tracking stock linked to a portion of EMC’s economic interest in the VMware business.