Dell smashes record for tech industry with $67bn EMC takeoverOctober 12, 2015 - 17:59 AMT PanARMENIAN.Net - Dell has agreed the biggest takeover in technology history, buying data storage provider EMC for $67bn, The Telegraph reports. The American company, founded by its billionaire chief executive Michael Dell more than 30 years ago, announced the deal on Monday, October 12. It will create the world's biggest privately-held technology company and crystallise Dell's transformation from what was once the world's biggest PC manufacturer into an IT services giant. Mr Dell and his private equity backers Silver Lake Partners took Dell private two years ago, as the PC industry was falling into decline, and promised to turn it into a leaner IT company with higher profit margins. Since then, the PC slump has worsened, with sales now down more than 25pc down on their peak, but Dell still makes just over half its money from computers. To buy EMC, it is arranging billions in debt financing. The deal is a complicated transaction, with EMC investors receiving $24 a share as well as a "floating" share that represents the public value of VMware, a desktop virtualisation software maker that EMC owns 81pc of. This values the deal at roughly $67bn. "The combination of Dell and EMC creates an enterprise solutions powerhouse bringing our customers industry leading innovation across their entire technology environment," Mr Dell said. EMC, based in Massachusetts, is the world's largest seller of data storage systems, as well as providing cloud computing and security to businesses. Mr Dell founded the company that bears his name in his university dorm in 1984. Its custom-made designs helped it become the biggest PC manufacturer in the early 2000s, but cheap competition from Lenovo and the rise of HP set it back. With the entire PC market seeing sales fall, it went private for $24bn in 2013, enabling it to turn around without pressure from public shareholders. Top stories Yerevan will host the 2024 edition of the World Congress On Information Technology (WCIT). Rustam Badasyan said due to the lack of such regulation, the state budget is deprived of VAT revenues. Krisp’s smart noise suppression tech silences ambient sounds and isolates your voice for calls. Gurgen Khachatryan claimed that the "illegalities have been taking place in 2020." Partner news Most popular in the section | Narek Manasyan wins European Boxing Championships silver for Armenia Armenia’s Narek Manasyan (92kg) won Armenia’s second silver medal at the European Boxing Championships 2024 on April 28. Blinken urges Azerbaijan to continue negotiations with Armenia Secretary of State Antony J. Blinken has urged Azerbaijani President Ilham Aliyev to continue negotiations with Armenia. Pashinyan, Blinken talk Armenia-U.S. ties over the phone Prime Minister Nikol Pashinyan had a phone conversation with US Secretary of State Antony Blinken on April 28, Pashinyan’s office reports. Titus, Bilirakis lead legislation to sanction Azerbaijani war criminals Representatives Dina Titus (D-NV) and Gus Bilirakis (R-FL) have introduced the bipartisan legislation. |