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Dell Completes Acquisition of EMC, Creating World’s Largest Privately-Controlled Tech Company


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Dell has completed the acquisition of EMC, creating a $74 billion company with a technology portfolio spanning hybrid cloud, software-defined data center, converged infrastructure, platform-as-a-service, data analytics, mobility and cybersecurity. Describing itself as the world’s largest privately-controlled technology company, the combined entity will be known as Dell Technologies

As a result of the merger, the Dell Technologies family of businesses includes Dell, Dell EMC, Pivotal, RSA, SecureWorks, Virtustream, and VMware.           Dell Technologies serves 98% of the Fortune 500. Its two largest, and most well-known businesses are the client solutions business and the infrastructure solutions business. In addition, Dell Technologies contains Boomi, Pivotal, RSA, SecureWorks, Virtustream, and VMware. According to Dell Technologies, its scale will enable it to deliver invest more in R&D, sales and marketing, services and support, and to improve solutions for customers. In addition, while the company will publicly report its financial results, it is privately controlled, enabling it to better focus investments on its customer and partner ecosystem over the long term.

Commenting on the significance of the merger during a briefing for media and industry analysts, Michael Dell, chairman and CEO of Dell Technologies, said that by 2031 the number of connected nodes and devices will grow from 8 billion to 200 billion or more, about 25 times the number of people on the planet, creating massive new sources of information. Using that information, especially in real time provides better insights and builds a better world and that is a challenge and opportunity for our generation, he noted. “That is why we created Dell Technologies – to make those possibilities a reality.”

The Client Solutions business will continue to be known "simply as Dell," said Dell. The Infrastructure Solutions business, “a real data center powerhouse,” will be known as Dell EMC. And, all of this capability is wrapped in Dell EMC Services. 

The rest of the product family – Pivotal, RSA, SecureWorks, Virtustream, and VMware  will continue to keep their independence and retain their freedom to develop their own ecosystems. “That’s part of our commitment to providing openness and customer choice,” said Dell, adding that the company has aligned capabilities where it makes strategic sense to deliver integrated solutions in the areas that matter most for the future, such as “hybrid cloud and security and seamless technology infrastructure from the edge to the core to the cloud.”

According to Dell, when the transaction closed today (September 7, 2016), EMC shareholders received $24.05 per share in cash in addition to tracking stock linked to a portion of EMC’s economic interest in the VMware business. Based on the estimated number of EMC shares outstanding at close, EMC shareholders received 0.11146 shares of new tracking stock (NYSE: DVMT) for each EMC share. The value of the tracking stock may vary from the market price of VMware given the different characteristics and rights of the two stocks.

To access a blog by Guy Churchward, President, Core Technologies Division, go to http://thecoreblog.emc.com/mid-range-storage/expanding-horizon-dell-emc-midrange-storage-customers.


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