Dell raised $20B for EMC purchase
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EMC's subsidiary VMware will be part of the $67 billion sale.
Denali Holding Inc. has finished a $20-billion round of financing that will go towards Dell's $67-billion purchase of Hopkinton digital firm EMC Corp.
The proceeds of the multiple lien offerings totaling $20 billion were put in escrow to be released upon the completion of the purchase of EMC, according to a release from Denali. At that time, Dell International LLC., a wholly-owned indirect subsidiary of Denali, and EMC will assume all of the co-issuers’ obligations under the notes.
The notes were offered in a private transaction to qualified institutional buyers.
The funds pave the way for the completion of the Dell-EMC merger that was initially announced in September and has been approved by the European Commission and the U.S. Federal Trade Commission. The takeover's $67-billion price tag is way above the current record-holding tech buy -- the $25-billion sale of Compaq Computer to Hewlett-Packard in 2002.
Still unresolved in the matter is what would happen to EMC employees, including the nearly 10,000 in Massachusetts.
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