Computing giant Dell has today purchased the storage technology firm EMC for $67 billion (that's about £43 billion in the Queen's money).
It is highly likely that EMC is worth a lot more than Dell, thanks to having its hands in cloud services, storage, analytics, security, data visualisation and reams of enterprise clients. But Dell can afford the price tag thanks to financing through Silver Lake, which is the same investment firm Michael Dell used to take his company private about two years ago. The deal still has to jump some regulatory hurdles, which means the big $67 billion cost could still change.
VMware, a name probably known better than EMC and part of the storage company's stable, won’t be sold to Dell like the rest of its brethren. Instead, The New York Times writes that Dell will only own a majority stake in VMware and the company will stay privately held.
The specifics of the deal remained unclear until the final hours before finalising deal, with Re/code suggesting that “the secretive nature of the talks hints at the fact that numerous terms had not been finalised as of late Sunday night.”
Combined with Dell’s hardware, Bloomberg points out, the merger could “create one of the biggest providers of enterprise computing products”. It is not the most exciting deal in tech (top marks if you can bring it into conversation down the pub over a few pints, though) but potentially one that looks likely to have major repercussions throughout the industry. [Bloomberg, Reuters]
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