Dell buys EMC to create 'enterprise powerhouse'

VMware to remain a publicly traded company after $67bn closes

Dell has acquired EMC in a $67bn deal to create the world's "largest privately controlled, integrated technology company".

In an announcement this morning, the pair said the transaction will "unite Dell's strength with small and mid-market customers with EMC's strength with large enterprises".

EMC shareholders are set to receive $33.15 per share and the total transaction will be valued at approximately $67bn.

Dell's chief executive, Michael Dell, said the combined entities will be set for rapid growth.

"The combination of Dell and EMC creates an enterprise solutions powerhouse bringing our customers industry-leading innovation across their entire technology environment," he said.

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

"Our investments in R&D and innovation along with our privately controlled structure will give us unmatched scale, strength and flexibility, deepening our relationships with customers of all sizes. I am incredibly excited to partner with the EMC, VMware, Pivotal, VCE, RSA and Virtustream teams and am personally committed to the success of our new company, our customers and partners."

EMC's chief executive, Joe Tucci, said: "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.

"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. I truly believe that the combination of EMC and Dell will prove to be a winning combination for our customers, employees, partners and shareholders."

VMware will remain a public company, the duo said.

The transaction is subject to customary conditions.

More to follow.