Dell buys EMC for $67 billion in largest ever tech

ANKARA

In the largest tech deal in history, device maker Dell acquired data storage company EMC for $67 billion Monday, a landmark deal for the fast-growing market of managing data for large corporations.

The deal is the third largest in any market so far in 2015 and showcases how much Dell desires to diversify its company beyond personal computers.

For several years, the privately-owned Dell has lagged behind Lenovo and HP as the third largest computer maker in the world. With the rise of mobile devices like smartphones and tablets, sales of desktop computers have flattened and companies across the industry have searched for healthy new revenue streams.

“We believe a strategically-aligned family of businesses will best drive innovation, customer choice and the ability to attract and retain world-class talent,” Dell chief executive Michael Dell wrote in an open letter to customers Monday. “Dell and EMC are both companies that have a demonstrated ability to win in fast-changing markets, and that will only accelerate from here.”

Founded in 1979 in Massachusetts, EMC offers a full portfolio of products and services in the growing cloud and big data storage field, an area Dell was lacking before the buy-out. While EMC stock jumped 2.5 percent Monday morning amid the news, shares drifted down to a more modest 1.8 percent rise from Friday’s close through the day, closing at $28.36. The deal valued EMC at $33.15 per share.

“I’m tremendously proud of everything we’ve built at EMC—from humble beginnings as a Boston-based startup to a global, world-class technology company with an unyielding dedication to our customers,” EMC CEO Joe Tucci said in a statement. “But the waves of change we now see in our industry are unprecedented and, to navigate this change, we must create a new company for a new era.”

Before Dell’s buyout of EMC, the next largest tech deal ever was Broadcom’s $36.5 billion purchase of Avago Technologies in May.