Dell Inc and EMC Corporation on 12 October 2015 signed a definitive agreement under which Dell, together with its owners will acquire EMC Corporation, while maintaining VMware as a publicly-traded company.
This will the biggest tech deal in history with a 67 billion US dollars acquisition of EMC Corp by Dell. The owners of Dell include Michael S Dell, founder, chairman and CEO of Dell, MSD Partners and Silver Lake, the global leader in technology investing.
VMware Inc is a US company that provides cloud and virtualization software and services. It is a subsidiary of EMC Corporation.
Terms of the definitive agreement between Dell Inc and EMC
• A valuation for each share of tracking stock of 81.78 US dollars, EMC shareholders would receive a total combined consideration of 33.15 US dollars per EMC share and the total transaction would be valued at approximately 67 billion US dollars.
• VMware will remain an independent publicly-traded company.
• The transaction is expected to be financed through a combination of new common equity as well as new debt financing and cash on hand. There are no financing conditions to the closing of the transaction.
• Michael S Dell and related stockholders will own approximately 70 percent 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 lead the combined company as Chairman and Chief Executive Officer.
• Dell’s headquarters will remain in Round Rock, Texas and the headquarters of the combined enterprise systems business will be located in Hopkinton, Mass.
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Who: Dell Inc
When: 12 October 2015