Dell Says It's Buying Data Storage Company EMC, In Deal Worth $67 Billion
Seeking to broaden its information technology product line, Dell is buying EMC Corp. for $67 billion in a deal that also gives EMC shareholders a stake in VMware, a cloud and virtualization company controlled by EMC.
That stake in VMWare, a publicly traded company whose stock has hovered around the $80 mark in recent weeks, would come in the form of a tracking stock, according to an announcement from Dell issued Monday morning.
In addition to that tracking stock, EMC shareholders will get $24.05 per share in cash. Before it's finalized, the overall price of the purchase could fluctuate according to VMWare's stock price, Dell says.
The deal comes two years after Dell founder Michael Dell took his company private. The board of EMC, based in Massachusetts, has approved the deal, and the two companies signed an agreement Monday.
News of the buyout comes days after rumors brought up a potential deal. Here's some background from ETF Daily News:
"EMC thrived in the 1990s as companies rushed to bulk up on storage gear. Later, as customers reduced spending on storage equipment, EMC revamped its product line to meet the growing needs of the mobile market and other emerging technologies.
"Still, the EMC stock price has underwhelmed investors. Even with Thursday's gains, EMC shares are down 9% year to date. And now the industry is becoming more crowded..."