Dell maneuvers toward EMC takeover with no rivals in sight

EMC found no other bidders, while Dell may try to sell off Perot Systems to ease its debts

It looks like the Dell-EMC wedding is on: EMC says it hasn't gotten any better proposals, and Dell reportedly is trying to shed Perot Systems to trim down for those photos.

The companies announced their engagement in October, when Dell agreed to buy the massive storage, cloud virtualization and security company for about US$67 billion. That kicked off a "go-shop" period in which EMC asked for alternative bids to make sure it wasn't selling itself short. The period ended early Saturday morning with no other offers received or deemed better than Dell's.

This clears the way for the deal to close as scheduled some time between May and October next year, assuming regulators and EMC shareholders approve.

To prepare for the deal, Dell is also looking to sell off Perot Systems for more than US$5 billion, according to a report on Monday by Recode. That deal might offset some of the debt that Dell plans to take on for the huge EMC purchase, the biggest buyout in IT history.

Dell has talked to several potential buyers, including Tata Consultancy Services in India, Atos in France, IT services company Genpact in New York, and Canadian IT company CGI, but hasn't found a buyer, Recode said, citing unnamed sources. Dell did not respond to a request for comment.

As a privately held company since 2013, Dell has more flexibility than publicly held rivals like IBM and Hewlett Packard Enterprise to adapt its organization for a big change like acquiring EMC. But the company still has hard work ahead to make the deal a winner. EMC is a federation among the company's traditional storage business, the RSA security division, Pivotal in the cloud services and big data business, and VMware, which will remain publicly traded.

Join the PC World newsletter!

Error: Please check your email address.

Tags Dell

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

GGG Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?