Computer-maker Dell Inc. has agreed to buy data storage company EMC Corp. in a cash-and-shares deal worth around US$67 billion.
Under the terms of the deal, EMC shareholders will receive US$24.05 a share in cash plus tracking stock in software maker VMware Inc., valued at about US$9, for each EMC share, Bloomberg News reported.
The deal, which marks a record in the technology industry for its size, comes as Dell is seeking to emerge as a big player in cloud-based data services market.
The merged company will be run by Michael Dell, the chief executive of the company he founded and took private for about US$25 billion two years ago.
The agreement includes a 60-day ‘go-shop’ provision that allows EMC to solicit bids from other parties and pay a discounted breakup fee to Dell if a deal is made with another company, according to Reuters.
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