Dell is all set to announce the biggest tech deal in history on Monday morning. According to media reports, the privately held PC maker Dell is planning to announce the takeover of data storage firm EMC Corp. in a deal worth more than $50 billion.
EMC has agreed to an offer worth $33 a share. "Around $25 per share would be paid in cash, and the rest would be paid to EMC shareholders with a special stock that tracks the market value of VMWare Inc, the virtualization software company majority-owned by EMC, Reuters quoted people familiar with the matter.
However, as part of the deal EMC will get up to 60 days to seek out other potential suitors. According to Reuters, "EMC has asked for a 'go-shop' provision to be included in the merger agreement that will allow it to solicit bids from other parties and pay a discounted breakup fee to Dell if there is a deal with another company."
And if sources are to be believed then IBM, Cisco, and HP could "theoretically be potential suitors for EMC, which has a marker capitalization of $53.6 billion."
The EMC acquisition is expected to help Dell diversify away from the shrinking PC market and give it the scale to attack the faster-growing and more lucrative market for managing and storing data for businesses. The deal could further strengthen Dell's presence among corporate clients at a time when Michael Dell has been trying to transform the company he founded in 1984 into a complete provider of enterprise computing services such as Hewlett-Packard Co and IBM.
With inputs from Reuters
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Updated Date: Oct 12, 2015 11:58:54 IST