Computer maker Dell Inc said on Monday it had agreed to buy data storage company EMC Corp in a US$67 billion record technology deal that will unite two mature companies and create an enterprise tech powerhouse.
The acquisition will help privately held Dell diversify away from a stagnant personal-computer market and give it greater scale in the faster-growing and more lucrative market for managing and storing data for enterprises.
"Dell wants to become the old IBM Corp, a one-stop shop for corporate clients. That model fell apart a couple of decades ago. Reviving it would be a stunning coup for Dell," said Erik Gordon, clinical assistant professor at the University of Michigan’s Ross School of Business.
The deal values EMC at US$33.15 a share. Dell will pay US$24.05 per share in cash and will also give EMC shareholders a special stock that tracks the share price in virtual software provider VMWare Inc.
EMC shares surged 3.9 per cent to US$29.08 in premarket trading.
"The combination of Dell and EMC creates an enterprise solutions powerhouse," said Michael Dell, who will lead the combined company as chairman and chief executive.