Dell agrees record $67b EMC deal

With the takeover of EMC, Dell moves away from the personal computer market and into the data storage and management 

Hazel Sheffield
Monday 12 October 2015 13:58 BST
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The $67 billion deal values Dell at $33.15 a share.
The $67 billion deal values Dell at $33.15 a share. (AP)

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Dell has agreed to buy EMC Corp, a data storage company for $67 billion in a record technology deal.

The deal sees Dell move away from the personal computer market and into the data storage and management business, which is seen to be more lucrative and growing faster.

The $67 billion deal values Dell at $33.15 a share. Dell will pay $24.05 a share in cash.

EMC shares shot up 3.9 per cent to $29.08 before the US market opened.

Michael Dell will lead the combined company as chairman and chief executive. "The combination of Dell and EMC creates an enterprise solutions powerhouse," Mr Dell said.

Erik Gordon, clinical assistant professor at the Unibversity of Michigan’s Ross School of Business, said that Dell wants to position itself as a new IBM Corp, or a place where corporate clients can go for all of their technology needs. “That model fell apart a couple of decades ago. Reviving it would be a stunning coup for Dell," Mr Gordon said.

Additional reporting by Reuters

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