Dell has agreed to buy EMC Corp., one of the biggest companies in data management, for around US $67 billion, which makes it the largest technology acquisition in history.

According to revealed details of the acquisition, Dell will pay US $24.05 per share in cash as well as tracking stock in EMC's VMWare Inch holding, valued at around US $9 for each EMC share. This acquisition will add around US $50 billion to debt load, which is needed in order to complete the deal, adding a significant amount to Dell's current $11 billion debt.

Dell, or to be precise, MSD Partners (Michael Dell's investment company), will fund the deal with its partners such as Silver Lake and will allow dell to broaden its product lineup in order to compete with rivals such as Hewlett-Packard Co.

Dell will expand its data computing sector and will certainly benefit from EMC's expertise in cloud management, enterprise-grade backup, recovery, archiving and data virtualization. According to details, VMWare won't be included into Dell and will remain as stand-alone publicly-traded company.

Dell will keep its headquarters in Round Rock, Texas while enterprise-systems business will move to Hopkinton, Massachusetts, current headquarters of EMC.



Source: via Bloomberg.com.