Technology giant Dell this week announced its plans to buy EMC Corporation for $67 billion, making it the largest pure-technology company takeover to date.
By securing EMC Corp. it appears Dell is looking to expand into the growing cloud computing sector. Many businesses are already opting for cloud computing and cloud storage services over traditional solutions, as cloud-based services can offer a cost-effective solution for data management. This has stalled growth in many of Dell’s current sectors, such as in the sale of servers and networking equipment, as many cloud providers use their own hardware. The buyout also falls in line with Dell’s move from
Dell is to buyout the stocks in EMC Corp. at $33.15 (£21.77) per share, $24.05 (£15.79) of which is to be in cash. The remaining value of the stocks is to be transferred to become VMware stock, a subsidiary company of EMC Corp. VMware is to remain an independent company and will continue trading on the stock market. Following the buyout announcement however, VMware stock saw a one-year low in price.
The acquisition follows the 2014 and 2013 buyouts of enterprise statistical software company StatSoft and cloud computing company Enstratius.