Holy friggin' Dell! $67bn EMC mega-gobble to complete on Sept 7
Dell and EMC will officially merge next Wednesday – September 7 – after getting approval from Chinese monopoly officials.
The combined tech monster will have 140,000 staffers worldwide, and will be called Dell Technologies with Michael Dell as CEO and chairman.
A little final financial chicanery is needed because Dell is a private company whereas EMC is publicly traded. As such, the combined company will remain privately owned, the stock ticker EMC will be suspended, and a new ticker called DVMT will be created to track EMC's stake in its VMware business.
China’s Ministry of Commerce has signed off on the biz gobble; the watchdog's green light was the final regulatory hurdle for the daring $67bn deal, which was announced in October.
EMC shareholders gave the thumbs up to the acquisition on July 19: 98 per cent of them, representing about 75 per cent of the storage giant's outstanding common stock, approved the deal. In a statement shared by Michael Dell within the past hour, we're told:
EMC shareholders will receive $24.05 per share in cash in addition to a newly issued 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.
Upon close of the transaction, EMC shares under the ticker symbol “EMC” will be suspended from trading on the New York Stock Exchange. Shares of the tracking stock, trading under the ticker symbol “DVMT,” are expected to begin trading on the New York Stock Exchange on Wednesday, September 7.
EMC's stock price is right now up 0.8 per cent to $29.81. It was around about $24 just before word of the looming merger spread last year.
At VMworld US this week – an annual conference for VMware and its customers – Big Mike promised "a whole new series of engineered solutions we [Dell, EMC and VMware] have been working on together." This hardware will emerge once the ink dries on the paperwork. Meanwhile, over in the UK at least, EMC signage is already being stripped from buildings to make way for Dell Technologies.
You can find more Reg analysis of the merger over here. ®