In what is described as the biggest takeover in the history of the technology industry, computer maker Dell has formally announced that it is buying storage firm EMC for $65 billion.
The mammoth transaction is a reminiscent of the huge acquisition made by tech giant HP of rival Compaq in 2001 for $25 billion.
The HP-Compaq deal sent shockwaves and prompted realignments in the local tech industry, with Compaq Philippines chief Nilo Cruz becoming the eventual head of the merged company even if it was HP which bought Compaq.
The local repercussions of Dell?s buyout of EMC promises to be as intriguing with observers now eager to find out what will happen to employees of EMC Philippines, particularly to country manager Ronnie Latinazo, who is the longest serving local chief of a major technology company.
Latinazo, whose wife passed away last week, is the first — and apparently the last ? country manager of EMC Philippines, having held the position for the last 15 years.
In a joint press statement, Dell and EMC said they have reached a definitive agreement under which Dell, together with its owners, Michael Dell and his financial backers MSD Partners and Silver Lake, will acquire EMC while maintaining VMware as a publicly traded company.
The combination of Dell and EMC will create the world?s largest privately controlled, integrated technology company. The transaction combines two of the world?s biggest technology franchises with strong positions in servers, storage, virtualization, and PCs.
Since becoming a private company, Dell said it has had the flexibility and agility to focus completely on customers and invest for long-term results.
The transaction will unite Dell?s strength with small business and mid-market customers with EMC?s strength with large enterprises to fuel profitable growth and generate significant cash flows.
?The combination of Dell and EMC creates an enterprise solutions powerhouse?[that] 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.
Joe Tucci, chairman and chief executive officer of EMC, the ?waves of change? sweeping the tech industry necessitated the merger.
?I?m tremendously 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,? Tucci said.
Following completion of the transaction, Michael Dell will lead the combined company as chairman and chief executive officer. Tucci will continue as chairman and chief executive officer of EMC until the transaction closes.
Dell?s headquarters will remain in Round Rock, Texas, and the headquarters of the combined enterprise systems business will be located in Hopkinton, Mass.