American computer giant Dell has announced a deal to acquire EMC, valued at $67billion.
It is set to become the biggest deal in history between two technology companies.
EMC, another US company, is a supplier of data storage, security, virtualisation, analytics and cloud computing solutions. Notably, cloud and virtualisation market leader VMware is a subsidiary of EMC. It will, though, remain an independent, publicly listed company.
This deal signals Dell’s intention to attack the enterprise data storage and management market. Dell seeks to reposition itself away from the personal computer market to serve the lucrative data needs of businesses.
Michael Dell, who two years ago took the company he created private, said in an interview “We’re continuing to evolve the company into the most relevant areas where I.T. is moving. This deal just accelerates that.”
Part of the deal contains a ‘go shop’ period, where EMC have 60 days to seek a better deal with another suitor, although it is highly unlikely such an offer will be made.
This move by Dell goes against the current trend of tech companies splitting into separate components devoted to the distinct arms of their businesses. HP, eBay and Google are three examples of this. Dell however, hope to become a one-stop shop for corporate clients.