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Dell To Buy EMC In Record Multi Billion-Dollar Deal

A deal that will see computer company Dell acquire Technology firm EMC looks set to be finalized later this month, confirming the most expensive takeover in tech history.

Fortune reported July 6 that the deal had been given the go-ahead by financial adviser Glass Lewis.

Dell and EMC shareholders still have to vote on the takeover, which has been valued as high as $67 billion in some reports and at $59 billion in others. The deal will include a combination of cash and stock.

The deal “is financially and strategically reasonable from the perspective of EMC and its shareholders,” the Glass Lewis announcement stated, according to Fortune.

Dell announced the purchase of EMC in an agreement last October.

EMC works with a large network of companies internationally. Dell Enterprise head Marius Haas vowed in an interview that these relationships would be protected.

“If you are in accounts, our objective is to grow that account base and expand lines of business in that account base,” Haas said with reference to the approximately 400 EMC partners, CRN reported. “And we are going to [incentivize] our team members to go find new business for you as well.”

Several EMC partners do not carry Dell products, and CRN reported that competitors like Hewlett Packard had been trying to secure their business in the wake of Dell’s takeover announcement.

Investopedia reported that parts of Dell’s business have been struggling, and that a partnership with EMC, which is strong in big data and cloud computing, would be a positive development.

VMW, a company fully owned by EMC and specializing in security and mobile device management, will continue to be a separate publicly-listed entity.

EMC CEO Joe Tucci welcomed the approval of the deal by Glass Lewis.

"We are very pleased that Glass Lewis is recommending EMC shareholders vote 'FOR' the proposed merger with Dell," Tucci said in a statement, Fortune reported. "I firmly believe, as does EMC’s board of directors, that the coming together of EMC and Dell is the best strategic option for all stakeholders."

Some EMC shareholders remain skeptical abut the takeover.

The deal was approved in February by the Federal Trade Commission, but must still be ruled on by Chinese regulators.

Sources: Fortune, CRN, Investopedia / Photo credit: Wikimedia Commons

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