The PC maker just executed the largest acquisition in tech history and is set to buy EMC for a whopping $67 billion (no need converting that to pesos; you already get the point)!
GIF via Reddit.com
"Wait, EMC what?" you may be asking. For the clueless, EMC is a lesser-known-but-still-super massive multinational tech company that specializes in offering data storage and cloud computing management and services (both hardware and software) for companies, among others. Check your work PC, there's a good chance it has VMware inside it, a popular software provided by EMC.
Dell, in a statement, said the deal will spawn the world's "largest privately controlled, integrated technology company." As to their main reason for the purchase, CEO Michael Dell says Dell is now "well-positioned for growth in the most strategic areas of next generation IT including digital transformation, software-defined data center, converged infrastructure, hybrid cloud, mobile and security." For the non-geeks, that just means Dell is now ready for future advancements in technology, especially in data storage and security and cloud computing, thanks to EMC's core competencies.
This is a bold move by Dell, one which is also rather unusual. You see, EMC is actually larger than Dell, the world's third-largest PC maker, in terms of valuation. This goes against the grain of previous high profile tech mergers (e.g. Facebook-Instagram). It's also worth noting that this is a stock-and-cash deal and EMC's shareholders will receive about $33.15 (around P1,500) per share.
With this deal, Michael Dell will be the CEO and chairman while EMC's CEO, Joe Tucci, will step down and retire. The merger will also be completed next year, between May and October.
See? There's a lot of big bucks involved in the tech scene. If you want further proof, here's a list of other megabuck deals involving all things geeky and shiny.