October 16, 2015

$67 billion Dell-EMC merger marks largest in tech history

This week marks a historic moment in tech mergers and acquisitions. In the largest deal ever, computer giant Dell bought EMC, a corporate software, storage and security firm, for $67 billion.

This week marks a historic moment in tech mergers and acquisitions. In the largest deal ever, computer giant Dell bought EMC, a corporate software, storage and security firm, for $67 billion. Experts heralded the news as a sign that Dell is near the completion of its rebranding as an IT solutions provider for companies. In the past, many have associated Dell products with their popular line of household PCs, long deteriorated by the rise of mobile devices and competitors' laptops and desktops. 

The average consumer may be unfamiliar with EMC, now the priciest buy in tech M&A history. David Goldman of CNN Money broke down the firm's achievements and profile in a piece describing Dell's deal:

"EMC is a behemoth of a corporate IT business," he writes. "It is among the largest providers of storage hardware in the world. It also makes servers and owns security company RSA, which is known for its hard-to-crack SecurID tokens. And its most prized possession is its 81% stake in VMware — the company that rules the world of virtualization software that allows businesses to run various operating systems on their devices."

Transforming workplace IT has become a new focus for Dell leadership. Analysts have praised this transition as the best route to resurrect the significance and popularity of Dell computers. Rather than focusing energy on marketing to individuals at home, Dell has shown the power and influence of dominating corporate settings with reliable computing solutions. The addition of EMC to the Dell portfolio should help extend this progress even further, cementing a new reputation for the well-known tech giant. 

"Dell and EMC are a marriage of two legacy vendors under siege by increasing corporate adoption of rented compute resources and consumer devices, as well as employees' preferences to use tablets and smartphones rather than PCs to communicate and collaborate," writes Clint Boulton of CIO Magazine. 

Tech titans we took for granted at the beginning of the 21st century have not all had such an easy time as Apple, Google and Amazon, particularly when it comes to maintaining relevance and a competitive edge in the marketplace. AOL has turned to content production and distribution as a primary goal, while Yahoo has dabbled in acquisitions like that of Tumblr to reach a younger audience. 

With the guidance of an M&A advisor your tech firm or startup can find, negotiate and sign a merger or acquisition deal that achieves your growth objectives. Contact us today to learn more about how working with an advisor can help your company reach the next level of expansion and success.