Update October 12, 2012 at 2:08 p.m .: Dell has just confirmed the acquisition of EMC for an amount of 67 billion dollars (58.8 billion euros), or 33.15 dollars per share. “The combination of Dell and EMC create a giant of enterprise solutions,” said Michael Dell, CEO of Dell.
We had heard about it for several days. This time around, things seem to be picking up steam. Dell is expected to announce this Monday the takeover of EMC, a company specializing in data hosting, for $ 53 billion (about 46.6 billion euros), according to Financial Times. If this information were to be confirmed, it would be the largest acquisition ever in the technology sector.
The transaction would be carried out for a price of $ 27 in cash per EMC share. But it would also add the value of new securities created related to VMware, a company in which EMC holds the majority of the capital. In the end, EMC would have accepted an offer at 33 dollars per share.
Respond to new business needs
To finance this operation, Dell would have entered into discussions with several banks in order to obtain a loan of 40 billion dollars. However, nothing is yet complete since the British daily specifies that EMC has 60 days to find a better buyer.
Two years ago, Michael Dell had spent $ 25 billion to buy the company he had founded and take it off the stock market. The objective was then to reorganize the American group to better meet the needs of the market. With EMC, Dell intends to expand into the cloud and data analytics.