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.
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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.”