EMC Sale For $67 Billlion Seen To Create New Rival For IBM, H-P
The announcement was made early morning New York time, or shortly before midnight Australian east coast time. Michael Dell, EMC chairman/CEO Joe Tucci and a number of other executives fronted a media-analyst conference call to explain details of the deal.
The deal has not been done by Michael Dell alone. Private equity firm Silver Lake Partners – who two years ago helped him take Dell private – also has part of the action, as has MSD Partners, a private investment company controlled by Dell and his family,
Dell said that VMware, 80 percent owned by EMC, will remain a publicly traded company.
Joe Tucci will remain CEO of EMC until the deal closes, expected between May and October 2016. After the merger is complete, Michael Dell will become CEO and chairman of the combined entity, which presumably means Tucci will exit the scene.
Observers say that by combining Dell – a former PC company now deeply involved in software, server and IT services – with EMC, a powerhouse in data storage and virtualisation, Michael Dell is seeking to create a integrated IT giant that can compete directly with IBM and Hewlett Packard.
Said Michael Dell last night: “”The combination of Dell and EMC creates an enterprise solutions powerhouse bringing our customers industry-leading innovation across their entire technology environment.
“Our new company will be exceptionally 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.”
Joe Tucci added: “I’m tremendously proud of everything we’ve built at EMC – from humble beginnings as a Boston-based startup to a global, world-class technology company with an unyielding dedication to our customers.
“But the waves of change we now see in our industry are unprecedented and, to navigate this change, we must create a new company for a new era.