Dell acquires EMC in $67 billion deal

SAN FRANCISCO (Web Desk) - Computer technology company Dell Inc. announced a $65 billion deal Monday to purchase cloud computing storage company EMC, the UPI reported.

The massive purchase is intended to allow the Texas-based Dell - taken private two years ago - to extend itself from computer sales to offering network services, corporate software and mobile devices.

The expansion also comes as many technology companies, like Hewlett-Packard, are breaking themselves into smaller parts to serve separate sectors of the market.

The acquisition is seen as Dell's attempt to diversify its services from personal computers, a slow-growing market, and into the lucrative data management and storage business.

Stockholders in the Massachusetts-based EMC will receive $33.15 per share in cash, and it will remain a publicly traded company, it said Monday.

The majority of EMC's value is its 81 percent stake in VMware, visualization software which can emulate a variety of operating systems.

Since Dell became a privately held company, it has been able to make business decisions without the involvement of public market investors and can move more decisively than in the past on acquisitions.

"[Dell] is the ultimate platform company," Egon Durban, a managing partner at the investment firm Silver Lake, Dell's financial backer, said. "This is everything we love as an investor."