Published On: Mon, Oct 12th, 2015

Largest Tech Merger of All Time: Dell to buy EMC in deal worth $67 billion

Internet And Technology Leaders Address Web 2.0 Summit 2011

 

  • EMC stockholders to receive approximately $33.15 per share (based on the assumptions described below) in a combination of cash as well as tracking stock linked to a portion of EMC’s economic interest in the VMware business
  • VMware to remain an independent, publicly-traded company

Dell Inc. and EMC Corporation today announced they have signed a definitive agreement under which Dell, together with its owners, Michael S. Dell, founder, chairman and chief executive officer of Dell, MSD Partners and Silver Lake, will acquire EMC Corporation, while maintaining VMware as a publicly-traded company.

EMC shareholders will receive $24.05 per share in cash in addition to tracking stock linked to a portion of EMC’s economic interest in the VMware business.

Based on the estimated number of EMC shares outstanding at the close of the transaction, EMC shareholders are expected to receive approximately 0.111 shares of new tracking stock for each EMC share.

Assuming, for illustrative purposes, a valuation for each share of tracking stock of $81.78. EMC shareholders would receive a total combined consideration of $33.15 per EMC share and the total transaction would be valued at approximately $67 billion. The value of the tracking stock may vary from the market price of VMware given the different characteristics and rights of the two stocks.

The EMC Board of Directors approved the merger agreement and intends to recommend that stockholders of EMC approve the agreement.

 

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