New York: The world's largest $67 billion technology merger between EMC Corporation and Dell Technologies is all set to close on September 7 after China granted the regulatory clearance.
Dell Technologies, the name of the new combined company, will begin operating immediately following the close of the transaction, Dell said in a statement on Tuesday. The announcement follows the regulatory approval of the Dell and EMC transaction by China's Ministry of Commerce which has granted clearance for the companies' proposed combination. EMC shareholders had approved the transaction on July 19, with approximately 98 percent of voting EMC shareholders casting their votes in favour of the merger, representing approximately 74 percent of EMC's outstanding common stock.
"This is a historic moment for both Dell and EMC. Combined, we will be exceptionally well-positioned for growth in the most strategic areas of next generation IT including digital transformation, software-defined data center, converged infrastructure, hybrid cloud, mobile and security," said Michael Dell, chairman and CEO of Dell Technologies.
"Our investments in R&D and innovation, along with our 140,000 team members around the world, will give us unmatched scale, strength and flexibility, deepening our relationships with customers of all sizes," he added.
At closing, EMC shareholders will receive $24.05 per share in cash in addition to a newly issued tracking stock linked to a portion of EMC's economic interest in the VMware business. Based on the estimated number of EMC shares outstanding at the close of the transaction, EMC shareholders are expected to receive approximately 0.111 shares of new tracking stock for each EMC share.
"I am proud of everything we've built at EMC - from humble beginnings as a Boston-based startup to a global, world-class technology company with an unyielding dedication to our customers," said Joe Tucci, chairman and chief executive officer of EMC.
"The combination of Dell and EMC creates a new powerhouse in the industry - providing the essential technology for the next era in IT," he added.
Dell announced in October last year a merger with EMC - the top multinational in computer storage and cloud computing.