[Channelnomics] Dell and EMC unite in $67bn mega-merger

Dell has confirmed its acquisition of EMC in a bumper $67bn deal, with VMware to remain its own publicly listed entity.Dell building

The acquisition will see Dell owners MSD Partners, Silver Lake, and Michael Dell acquire the storage titan for at a price anticipated to come in at $33.15 per share. The deal values EMC at a total value of $67bn (€58.9bn). It is forecast to close between May and October of next year. Members of the EMC board have approved the deal, and will recommend that the company’s shareholders do likewise.

The deal comprises a total of $24.05 in cash per share of EMC, with each shareholder also likely to receive the equivalent of 0.111 shares of tracking stock – which the parties claim is “linked to a portion of EMC’s economic interest in the VMware business” – for every share they own in EMC. VMware – in which EMC holds a four fifths stake – will remain as an independent company listed on the New York Stock Exchange.

According to today’s press release, the buyout will be financed “through a combination of new common equity from Michael Dell, MSD Partners, Silver Lake and Temasek, the issuance of tracking stock, as well as new debt financing and cash on hand”.

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