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The $67 billion acquisition of EMC by Texas-based Dell has been cleared by the U.S. Federal Trade Commission, paving the way for the largest IT merger in U.S. history.
The waiting period for the merger of the two companies officially passed at midnight Feb. 22, with the FTC raising no issues with the acquisition, according to a release from Dell. The combination of Dell and Hopkinton-based EMC will create the world’s largest privately-controlled, integrated technology company.
“We are delighted that, with this key regulatory milestone now complete, we have taken another step on our path to becoming a combined company,” Michael Dell, Chairman and CEO of Dell Inc., said in a statement. “Our teams are engaged in integration planning and all transaction-related workstreams are on track.”
The Dell-EMC combo, which will retain EMC subsidiary VMware, will be the most expensive technology merger in history when the deal closes. 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.
The transaction remains subject to approval by EMC’s shareholders, with a vote expected in the spring. Regulatory clearance in certain other jurisdictions and other customary closing conditions must also take place. The acquisition of the Massachusetts information storage company by the mammoth Texas computer company is set to sail through the European Union's antitrust regulators without any concessions.
Unresolved in the matter is what would happen to EMC employees, including the nearly 10,000 in Massachusetts. The question of jobs comes as VMware has announced it will lay off 800 employees and a new chief financial officer will come in. The layoffs are expected to cost the company $55-$65 million in the first half of 2016 but will result in savings moving forward, according to the company.
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Worcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
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