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Dell buys EMC for $67 billion in the largest deal ever in the history of tech

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Dell buys EMC for $67 billion in the largest deal ever in the history of tech

You might not have heard of EMC, but it’s a technology behemoth that runs many of the services you use today. The company provides datacenter storage for large technology companies — and today, Dell has announced that it plans to buy it for $67 billion. The deal will be the largest ever in the history of the tech industry, and if it passes the relevant regulatory hurdles, it’ll make Dell the biggest company comapny in the enterprise computing field.

The nature of the planned takeover is complicated, with the agreement reportedly including a “go-shop” provision that allows EMC to consider bids from rival firms. This is intended to reassure EMC’s investors that they are getting the best value possible out of the sale. The company is reportedly under pressure from an activist investor, hedge fund Elliott Management, with the Times noting that a potential deal between EMC and Hewlett-Packard already fell apart prior to this.

The deal, which is still pending shareholder approval, will make Dell one of the largest providers of enterprise computing products, with EMC’s digital storage business adding to the company’s own server and IT services. The company (which is still also the world’s third biggest PC manufacturer) says it will be able to offer “end-to-end” solutions to clients. However, the ambitious takeover bucks a trend in the industry, with other firms such as HP and eBay choosing to break up their businesses — rather than make them bigger — to better deal with a changing market. Two years ago, Dell went private in order to reorganize itself without pressure from public investors. This deal could give EMC some similar breathing space.

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