Dell to buy EMC for about $67bn

Dell Inc has agreed to buy data storage maker EMC Corporation in a deal worth around $67bn.

In a joint statement released on Monday, the companies said that under the terms of the agreement, EMC shareholders will receive approximately $33.15 per share in a combination of cash and tracking stock linked to a portion of EMC’s economic interest in the VMware business.

“The combination of Dell and EMC creates an enterprise solutions powerhouse bringing our customers industry leading innovation across their entire technology environment.

"Our new company will be exceptionally well-positioned for growth in the most strategic areas of next generation IT including digital transformation, software-defined data center, converged infrastructure, hybrid cloud, mobile and security,” said Mr Dell.

If the deal goes through, Mr Dell will run the combined business as chief executive and chairman, while Joe Tucci will continue as chairman and chief executive officer of EMC until the transaction closes.

The transaction is expected to be financed through a combination of new common equity from Mr Dell, MSD Partners, Silver Lake and Temasek, the issuance of tracking stock, as well as new debt financing and cash on hand.