Box-shifter Dell is reportedly looking to celebrate its status as a privately-held firm with one of the biggest acquisitions in the history of tech: the purchase of data giant EMC for $53 billion in cash and shares.
Dell has had a troubling few years, with its Q2 2013 financials showing a dramatic 72 per cent drop in profits largely thanks to its decision to leave the mobile market and the ongoing global slowdown in traditional PC sales. With investors getting antsy, company founder Michael Dell opted to take the company private once more, agreeing a buyout deal with existing shareholders valued at $24.9 billion and backed by funds from investment group Silver Lake and software giant Microsoft.
That, it would appear, was the catalyst for a dramatic turnaround, to the point where Dell is now being named as the impending buyer of EMC Corporation, a 36-year-old Massachusetts company best known for its VMware virtualisation and RSA Security subsidiary. According to unnamed sources speaking to Reuters, the company is to pay upwards of $53 billion - $33 per share, a 27 per cent increase on trading value prior to the news being published and the price jumping by around ten per cent - in a mixture of cash and shares.
Reuters' source isn't saying it's a done deal yet, though: EMC has reportedly requested a 'go-shop' clause in the contract, which grants it 60 days from the ink being dry to find a better offer from a rival company. If it succeeds, Dell gets a breakup fee - but one smaller than if EMC simply broke off the contract without such a clause.
Neither Dell nor EMC have commented on the report.
UPDATE 20151012 1400:
Dell and EMC have issued a joint statement confirming the acquisition, which values EMC at an impressive $67 billion. Michael Dell is to become chair and chief executive of the joint firm.
Dell has had a troubling few years, with its Q2 2013 financials showing a dramatic 72 per cent drop in profits largely thanks to its decision to leave the mobile market and the ongoing global slowdown in traditional PC sales. With investors getting antsy, company founder Michael Dell opted to take the company private once more, agreeing a buyout deal with existing shareholders valued at $24.9 billion and backed by funds from investment group Silver Lake and software giant Microsoft.
That, it would appear, was the catalyst for a dramatic turnaround, to the point where Dell is now being named as the impending buyer of EMC Corporation, a 36-year-old Massachusetts company best known for its VMware virtualisation and RSA Security subsidiary. According to unnamed sources speaking to Reuters, the company is to pay upwards of $53 billion - $33 per share, a 27 per cent increase on trading value prior to the news being published and the price jumping by around ten per cent - in a mixture of cash and shares.
Reuters' source isn't saying it's a done deal yet, though: EMC has reportedly requested a 'go-shop' clause in the contract, which grants it 60 days from the ink being dry to find a better offer from a rival company. If it succeeds, Dell gets a breakup fee - but one smaller than if EMC simply broke off the contract without such a clause.
Neither Dell nor EMC have commented on the report.
UPDATE 20151012 1400:
Dell and EMC have issued a joint statement confirming the acquisition, which values EMC at an impressive $67 billion. Michael Dell is to become chair and chief executive of the joint firm.
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