After clearing Chinese regulatory approval, the two companies are looking to combine to create an enterprise, hybrid cloud, mobile and security powerhouse.

Mitch Wagner, Executive Editor, Light Reading

August 30, 2016

1 Min Read
Dell-EMC deal closes next week

Dell's plan to acquire EMC has cleared its final hurdle, gaining a blessing from regulatory authorities in China and set to close September 7.

The new company, going by the name Dell Technology, is looking to dominate next-generation enterprise computing, including hybrid cloud, mobile and security, Dell chairman and CEO Michael Dell said. The companies will have 140,000 staff worldwide.

Dell, which is privately held, is buying EMC and its federation of subsidiaries, including RSA Security, software development company Pivotal Software and a controlling stake in virtualization software vendor VMware.

Dell and VMware CEO Pat Gelsinger spoke at a joint press conference at VMworld in Las Vegas on Monday, where they made assurances that the two companies would partner closely, but also continue to work independently and foster their separate -- and sometimes competing -- partner ecosystems. They also identified the service provider market as a fertile growth area, with NFV being a particular strength. (See VMware & Dell CEOs See Massive NFV Opportunity and Dell-EMC-VMware Merger Could Push Comms to Kids' Table.)

At closing, 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 interest in VMware. At that time, EMC shares will be suspended from trading on the New York stock Exchange, while the tracking stock will begin trading under the symbol DVMT.

Announced in October 2015, the companies said at the time that the deal would close within a year. (See Dell Buys EMC for $67B in Biggest Tech Deal Ever.)

— Mitch Wagner, Follow me on TwitterVisit my LinkedIn profile, Editor, Light Reading Enterprise Cloud

About the Author(s)

Mitch Wagner

Executive Editor, Light Reading

San Diego-based Mitch Wagner is many things. As well as being "our guy" on the West Coast (of the US, not Scotland, or anywhere else with indifferent meteorological conditions), he's a husband (to his wife), dissatisfied Democrat, American (so he could be President some day), nonobservant Jew, and science fiction fan. Not necessarily in that order.

He's also one half of a special duo, along with Minnie, who is the co-habitor of the West Coast Bureau and Light Reading's primary chewer of sticks, though she is not the only one on the team who regularly munches on bark.

Wagner, whose previous positions include Editor-in-Chief at Internet Evolution and Executive Editor at InformationWeek, will be responsible for tracking and reporting on developments in Silicon Valley and other US West Coast hotspots of communications technology innovation.

Beats: Software-defined networking (SDN), network functions virtualization (NFV), IP networking, and colored foods (such as 'green rice').

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