Dell Agrees to Buy Data Storage Provider EMC for $67 Billion
Dell will purchase data storage provider EMC for $67 billion, the company announced on Monday.
The big announcement for Dell is part of the company's strategy to become a big player in business computing. EMC provides businesses with data storage solutions for large amounts of data and files, CNet reports.
Dell was a leader in the PC market in the 1990s and early 2000s, with catchy commercials featuring a young adult proclaiming, "Dude, you're getting a Dell!" Once customers started gravitating to portable devices like laptops, tablets and smartphones, PC sales struggled to keep up in a period the industry now calls "the post-PC era."
Dell has also fallen to the No. 3 spot in the PC market worldwide behind Lenovo and HP. Lenovo has a 21 percent market share, HP has a 19.6 percent market share and Dell has a 14.3 percent market share, according to market researcher IDC.
The Dell-EMC merger could presage future technology partnerships. With changes overhauling the computing industry, companies are trying to stay fresh with new hardware, software and services. For example, Microsoft is evolving its Windows operating system into a solution for all devices, not just PCs.
"This is a landmark deal that will have wide-reaching ramifications across the tech landscape for years to come," Wall Street firm FBR said in a note to investors Monday.
Dell has expertise assisting small and medium-sized businesses, while EMC has worked with large enterprise businesses. The combination of the two models may help Dell reach even more clients.
EMC has long been a trusted provider of products that help businesses store, streamline and manage massive amounts of data. But the company has struggled over the past several years as data storage has fallen in price, the New York Times noted. EMC has tried to counter market effects by making acquisitions over the years, but it has continued to struggle.
EMC shareholders will receive $24.05 per share in cash. Dell was formerly a publicly-traded company, until October 2013, when it was bought out by founder Michael Dell and investment partners and transformed into a private company. The two companies expect this deal to close in the middle of 2016.
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