The Dell EMC takeover was completed Wednesday and will result in the loss of between 2,000 and 3,000 jobs. When the likelihood of the takeover was declared last October, it was feared then that there would be job losses, and so it has proved. It was announced Wednesday that Dell Technologies completed the acquisition of EMC Corp, the data storage company.
On a brighter note, the acquisition has created the world’s largest privately controlled technology company. Known as Dell technologies, the new company comprises Dell, Dell EMC, Pivotal RSA, SecureWorks, Virustream and VMware.
The company HQ is in Round Rock, Texas. The company is to cut 2,000 – 3,000 jobs of the combined 140,000. Most of these are believed to be US jobs, mainly in marketing, admin and supply chain areas.
The $67 billion offer for EMC Corp made headlines when it was publicised last year. Dell and EMC agreed the purchase in October 2015. According to the agreement, holders of EMC shares will receive $24.05 per share in cash and tracking stock commensurate with the economic interest of EMV in VMware Inc. This is an EMC subsidiary involved in cloud and virtualization software. Stockholders will likely receive 0.111 shares of new tracking stock for each EMC share they hold
Michael Dell will become Chairman of the newly formed Dell Technologies company. Mr. Dell stated that the new company is well placed to be at the forefront of growth in the most strategic areas of next generation IT. He included digital transformation, hybrid cloud, converged infrastructure and other aspects of new computing technology.
The new tracking stock will begin trading with the ticker DVMT the same day as EMC has been delisted from the N.Y. Stock Exchange. The Dell EMC takeover has taken time to complete, and we await what is to come.
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