Michael S. Dell, CEO, Dell
The agreement, valued at approximately $67bn, sees Dell founder and CEO Michael S. Dell, MSD Partners and Silver Lake acquiring EMC.
The combination of Dell and EMC will create the world’s largest privately controlled, integrated technology company.
The merger brings together industry innovators in digital transformation, software-defined data centre, hybrid cloud, converged infrastructure, mobile and security.
The transaction will be financed through a combination of new common equity from Michael S. Dell, MSD Partners, Silver Lake and Temasek, the issuance of tracking stock, as well as new debt financing and cash on hand. There are no financing conditions to the closing of the transaction.
Dell and related stockholders will own approximately 70% of the company’s common equity, excluding the tracking stock, similar to their pre-transaction ownership.
Following completion of the transaction, Michael S. Dell will become chairman and CEO, while Joe Tucci will continue as chairman and CEO of EMC until the transaction closes.
EMC stockholders will receive approximately $33.15 per share in the deal and VMware is to remain an independent, publicly traded company.
Michael S. Dell commented: “The combination of Dell and EMC creates an enterprise solutions powerhouse bringing our customers industry leading innovation across their entire technology environment. Our new company will be exceptionally well-positioned for growth in the most strategic areas of next generation IT including digital transformation, software-defined data centre, converged infrastructure, hybrid cloud, mobile and security. I truly believe that the combination of EMC and Dell will prove to be a winning combination for our customers, employees, partners and shareholders.”
Egon Durban, managing partner of Silver Lake, said: “We are excited and honoured to invest in the outstanding businesses built by Joe Tucci and his world-class management team. This is an extraordinary opportunity to continue and expand our partnership with the iconic technology entrepreneur Michael Dell and his talented team.”