Historic Dell and EMC Merger Complete – Meet Dell Technologies

By Nathan Kirsch

Historic Dell and EMC Merger Complete; Forms Worlds Largest Privately Controlled Tech Company

  • Dell Technologies becomes the worlds largest privately-controlled tech company
  • Unique corporate structure enables company the flexibility to innovate like a startup and invest in R&D for the long term while offering the trust, service and global scale of a large enterprise
  • Comprises unique family of businesses including Dell, Dell EMC, Pivotal, RSA, SecureWorks, Virtustream and VMware
  • Technology leader in 20 Gartner Magic Quadrants
  • Blends Dells go-to-market strength with small business and mid-market customers and EMCs strength with large enterprises
  • New Dell Technologies and Dell EMC branding launched today

Dell Technologies

Dell Technologies today announced completion of the acquisition of EMC Corporation, creating a unique family of businesses that provides the essential infrastructure for organizations to build their digital future, transform IT and protect their most important asset, information. This combination creates a $74 billion[i] market leader with an expansive technology portfolio that solves complex problems for customers in the industrys fast-growing areas of hybrid cloud, software-defined data center, converged infrastructure, platform-as-a-service, data analytics, mobility and cybersecurity.

The company will host a conference call with media and industry analysts today at 9:00 a.m. Central Time.

Dell Technologies serves 98 percent of the Fortune 500 and comprises several market leading businesses. The two largest, and most well-known, are the Dell client solutions business and the Dell EMC infrastructure solutions business both of which are supported by Dell EMC Services. In addition, Dell Technologies contains Boomi, Pivotal, RSA, SecureWorks, Virtustream and VMware. This unique structure combines the focus and innovation of a startup with the global scale and service of a large enterprise. Dell Technologies scale will enable it to deliver more innovation and investment in R&D, sales and marketing, services and support and deliver more efficient and cost-effective solutions for customers. Furthermore, while the company will publically report its financial results, it is privately controlled, enabling it to better focus investments on its customer and partner ecosystem over the long term.

Michael Dell, chairman and CEO of Dell Technologies, said, “We are at the dawn of the next industrial revolution. Our world is becoming more intelligent and more connected by the minute, and ultimately will become intertwined with a vast Internet of Things, paving the way for our customers to do incredible things. This is why we created Dell Technologies. We have the products, services, talent and global scale to be a catalyst for change and guide customers, large and small, on their digital journey.”

Dell Technologies blends Dells go-to-market strength with small business and mid-market customers and EMCs strength with large enterprises and stands as a market leader in many of the most important and high-growth areas of the $2 trillion information technology market, including positions as a Leader in 20 Gartner Magic Quadrants and a portfolio of more than 20,000 patents and applications.

Jamie Dimon, Chairman and CEO, JPMorgan Chase, commented, Financial services is one of the first-movers in embracing technology to better serve our customers, and the next wave of digitalization continues a trend thats been occurring my whole lifetime. As one of the worlds biggest users of Dell and EMC, we spend approximately $9 billion a year on technology, including infrastructure as well as cloud computing, big data analytics and cybersecurity. We make sure we spend wisely and select our partners very carefully. Ive known Michael Dell for 30 years. Hes top notch, ethical, and deeply cares about everyone he works with both internally at his company and across the industry. I’m thrilled for Michael and the new company, and we are eager to see everything they create in the future.

Marc Benioff, Chairman and CEO, Salesforce, added, Salesforces partnership with Dell and EMC has been instrumental in pushing innovation across the industry. Michael is an incredible visionary and one of the most important leaders in our industry. He has been an amazing partner contributing to our success. Now with Dell Technologies, he is once again reshaping the technology industry.”

Tim McGrath, President and CEO of PC Connection, Inc., commented, Our relationship with Dell has grown tremendously in the past six-plus years. Along with being recognized as a Dell Partner of the Year in both 2014 and 2015, the business has grown significantly. As partners of Dell, EMC, VMware and RSA, we are able to provide customers with innovative, value driven, and secure end-to-end IT solutions. With the combination of the Dell Technologies family of businesses, PC Connection, Inc. is expanding its capabilities offering an ever broadening comprehensive portfolio to our customers. We look forward to strengthening our partnership with Dell Technologies to ensure that our customers have the technical support, guidance, and product selection needed to help solve their business challenges with IT.

As part of todays announcement, the company unveiled its new branding. A video along with additional information on the new brand is available here.

Financial Terms

When the transaction closed on September 7, 2016, EMC shareholders received $24.05 per share in cash in addition to tracking stock linked to a portion of EMCs economic interest in the VMware business. Based on the estimated number of EMC shares outstanding at close, EMC shareholders received 0.11146 shares of new tracking stock (NYSE: DVMT) for each EMC share. The value of the tracking stock may vary from the market price of VMware given the different characteristics and rights of the two stocks.

About Dell Technologies

Dell Technologies is a unique family of businesses that provides the essential infrastructure for organizations to build their digital future, transform IT and protect their most important asset, information. The company services customers of all sizes across 180 countries ranging from 98% of the Fortune 500 to individual consumers with the industrys most comprehensive and innovative portfolio from the edge to the core to the cloud.