Tech Deal-making Frenzy Reaches New High as Dell Shells Out US$67 bn for EMC

Dell Inc. has signed what is the one of the biggest deals in the technology industry by acquiring EMC Corp for US$67 bn. EMC is a leading provider of data storage products and solutions. This move by Dell reiterates its ambitions of becoming a tech giant who not only dominates the cloud computing domain, but also competes more fiercely with other global rivals. The demand for data storage and management has never been higher in the corporate sector and this is the reason Dell hopes to tap into this opportunity early on.

Besides going down in history as one of the largest acquisitions in the technology industry, the Dell-EMC deal is the third-largest this year across all industries. Besides underscoring the extent of competition in the technology products and services industry, this deal also reveals the bullishness of companies in pouring in billions of dollars into mergers and acquisitions. This trend is defined by large, mature companies taking advantage of the low interest rates that currently prevail in U.S. economy. The implications of these multimillion mergers and acquisitions will only become clear in the next few years, when the dust settles.

Dell currently ranks as the third-largest computer maker in the world, and is struggling to break free from its conventional business model based on PCs. The company views the services sector – especially the cloud data services space – as holding much lucrative potential. The company’s bosses expect that the EMC deal could help Dell acquire the competitive advantage it has been missing in recent years.

The merger has been approved by EMC’s board, and a nod of approval from shareholders is expected to come through soon. Dell’s server business, now supplemented with EMC’s visualization and storage capabilities, will now boast a substantial product and services portfolio. With this, the company will be directly able to challenge larger, more successful rivals such as IBM, Cisco Systems, and Hewlett-Packard.


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