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Dell grabs EMC for $67 billion

Dell and EMC made it official this morning – Dell intends to acquire EMC for an expected $67 billion price tag in the largest technology transaction ever. The deal makes EMC a private company, while Dell will maintain EMC-owned VMware as a public company.

Dell and its partner Silver Lake will pay EMC stockholders approximately $33.15 per share — $24.05 in cash plus tracking stock tied to EMC’s 80% share of VMware.

Dell founder Michael Dell will lead the combined company, while Joe Tucci will remain chairman and CEO of EMC until the deal closes. Pat Gelsinger will remain VMware CEO. Dell will maintain its Round Rock, Texas, headquarters while EMC’s Hopkington, Mass. offices will serve as headquarters of the combined enterprise systems business.

EMC’s directors have approved the merger and will recommend that EMC shareholders also approve it.

The deal is expected to have repercussions throughout the technology world, as other large companies plot counter moves.

The agreement includes a 60-day window for EMC to talk to other suitors. There is speculation that Hewlett-Packard, Cisco and IBM may consider trying to outbid Dell to take control of EMC although the size of the Dell-EMC proposed deal makes that unlikely. Those other large companies may go out and strike other deals to counter the bulk of Dell-EMC, which means many storage vendors will be in play.

More information will come out following an EMC-VMware conference call at 7:45 ET today, and a Dell-EMC call at 8:45.

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