On October 12, Dell proposed merging with tech giant EMC to create a "premier end-to-end technology company". This is a massive move for Dell and will give Dell a much stronger foothold in the enterprise market. The Board of EMC approved the deal but it still needs regulatory and shareholder approval.
Great news in theory for investors in EMC, although the share price of EMC peaked at the time of the announcement (at $28.35 a shared) and was on a downward trend since then.
EMC is best known as the storage technology company founded in 1979. However, its businesses include famous technology brands like
RSA Security,
VMWare for virtualization and
Pivotal for cloud and agile development solutions. Perhaps less-well known is
VCE, which specialises in converged infrastructure solutions and has a strong relationship with Cisco, including engineering, resale and support agreements. VMWare is anticipated to continue to trade publicly (
VMW:NYSE). EMC really is an all round enterprise technology company and Dell wants to be that too.