In Q2'16 EMC reported $6 billion total revenue of which $1.68 billion (or 28%) was credited to VMW.Įach of the merged companies has its challenges and opportunities: EMC's revenue and operating income highlights the importance of VMW within the company. Dell is paying EMC shareholders $24.05 per share in cash and issuing 0.111 shares of a tracking stock in VMW per share of EMC held. VMW is a lead player in data center virtualization and the cloud. The merger also gives Dell control of EMC's 80% owned VMWare ( VMW). The combined company will have leading positions in servers, storage, virtualization and PCs and be well positioned in other fast growing IT segments: Digital Transformation, Software Defined Data Centers, Hybrid Cloud, Converged Infrastructure, Mobile, and Security. The rationale…? The deal diversifies Dell's product mix, merging its 4th place ranking and expertise with servers (14% market share) with EMC's number one position in data storage (and 24% market share).
EMC STOCK CONVERTED TO DELL STOCK SYMBOL PRO
The merged entity, to be renamed Dell Technologies, would have pro forma FYE 1/29/16 revenue of $74.0 billion, gross margin of $19.2 billion, and an operating loss of $2.9 billion.
The largest tech company acquisition ever is on track to close within the next 2-3 months after receiving a 98% thumbs up vote from EMC's shareholders this past Tuesday 7/19.
Dell Inc.'s ( NYSE: DELL) $63.5 billion proposed acquisition of EMC Corp ( EMC) was announced in October 2015.
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