Dell will close the EMC deal next week

Round Rock-based tech giant has received final regulatory approval needed from China. 

Posted August 30th, 2016

Dell Technologies said it plans to close its historic purchase of data storage company EMC Corp. on Sept. 7.

The deal was first announced in October 2015 and has taken nearly a year to complete. In a statement, Dell  executives said Tuesday they have received approval of the deal from China, which was its last remaining regulatory hurdle

The combined company will be called Dell Technologies and will be headquartered in Round Rock, with over 140,000 employees worldwide. 

"This is an historic moment for both Dell and EMC," Dell CEO Michael Dell said in a written statement. "Combined, we will be exceptionally well-positioned for growth in the most strategic areas of next-generation IT."

EMC's CEO Joe Tucci, who will be retiring after the deal closes, said the combination of Dell and EMC creates a new powerhouse in the industry. 

Buying EMC is all part of Dell's strategy to diversify beyond computers and become the ultimate provider of IT services to businesses, offering PCs, software, servers and storage. 

Analysts have said that buying EMC is a crucial part of this effort because of they offer access to larger customers. 

EMC shareholders overwhelmingly approved the transaction on July 19 with 98 percent of EMC shareholders who cast votes approving it. 

When the deal closes, EMC shareholders will receive $24.05 per share in cash and a "tracking stock" that is linked to EMC's economic interest in VMware, one of its subsidiaries. VMware makes data storage software and is part of why Dell was interested in buying EMC. 

The final price tag for the deal has fluctuated based on the value of VMware's stock. 

When the deal was first announced it was valued at $67 billion. In the months since the acquisition was announced, the total cost has dipped below $60 billion, but its stock has been on an upswing since February. 

Shares of the new EMC tracking stock are expected to begin trading on the New York Stock Exchange on Sept. 7.