Dell’s acquisition of EMC Corp. (EMC) came into the spotlight in October 2015, as Dell announced that it was acquiring EMC for a staggering $67 billion. The transaction is set to close today, September 7, 2016, after a long wait.
BusinessWire released a press release that announced the two companies will operate as a combined company immediately as Dell Technologies.
The long-awaited deal was held up pending China’s approval of the merger. The company received regulatory approval from the China Ministry of Commerce late in August to allow the deal to come to a close.
Michael Dell, CEO and founder of Dell, stated, “This is an historic moment for both Dell and EMC.”
Dell, a computer giant, is a private company that left the stock market in 2013 following a $24.4 billion buyout. The company went private as PC sales fell 3.5% in 2013 and have continued to fall ever since.
Dell Technologies reported their Fiscal 2017 Q2 results on Tuesday ahead of the deal. The company boasted revenue of $13.1 billion, up just 1% year-over-year. Operating income came in at $63 million, a boost over the same period last year when the company posted a loss.
The financial postings from Dell came the night before the company closes their deal with EMC reflects on the company’s future.
Analysts suggest that the combined company may cut 2,000 jobs following the takeover. Job cuts are expected to occur over time and not be all at once.
Shareholders in EMC will receive $24.05 per share in cash.
EMC will be delisted, while EMC’s interest in VMWare (VMW) will be tracked under the DVMT ticker.
Shareholders of EMC are estimated to receive 0.111 shares per share of EMC that was owned. EMC owned 81% of VMware, valued at more than $35 billion. Former shareholders will retain 53% of VMWare, while Dell will hold 28% of the company, according to reports.
