Dell to acquire EMC Corporation for $67 bn

In one of the mega acquisitions in the global IT space, PC maker Dell Inc will acquire EMC Corporation for about $67 billion to create the "world's largest privately-controlled, integrated technology company".

Under the definitive agreement, Dell along with its owners -- Founder & Chairman Michael S Dell MSD Partners and Silver Lake, the global leader in technology investing -- will acquire EMC Corporation.

The EMC Board of Directors approved the merger deal and intends to recommend that stockholders of EMC approve the agreement.

Based on valuation for each share of "tracking stock of $81.78, the intraday volume-weighted average price for VMware on Wednesday, October 7, 2015, EMC shareholders would receive a total combined consideration of $33.15 per EMC share and the total transaction would be valued at approximately $67 billion", Dell Inc said in a statement.

Under the terms of the agreement, EMC shareholders will receive $24.05 per share in cash in addition to tracking stock linked to a portion of EMC's economic interest in VMware, which is an arm of EMC Corporation.

Based on the estimated number of EMC shares outstanding at the close of the transaction, EMC shareholders are expected to receive approximately 0.111 shares of new tracking stock for each EMC share, it added.

The combined entity will be "a leader in the extremely attractive high-growth areas of the $2 trillion information technology market with complementary product portfolios, sales teams and R&D investment strategies", the statement added.

"The transaction combines two of the world's greatest technology franchises with leadership positions in servers, storage, virtualisation and PCs...," it added.

Commenting on the acquisition, Michael Dell said: "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 center, converged infrastructure, hybrid cloud, mobile and security."

EMC Chairman and CEO Joe Tucci said, "The waves of change we now see in our industry are unprecedented and, to navigate this change, we must create a new company for a new era".

The combination of EMC and Dell will prove to be a winning combination for customers, employees, partners and shareholders, he added.

The deal combines EMC's leadership in digital storage with Dell's expertise in the servers market that businesses use for computing tasks.

With EMC in tow, Dell would look at expanding its product lineup in high-end data storage equipment as it competes with the likes of Hewlett-Packard Co and others.

Dell went private for about $25 billion in 2013.