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The
offer is $33.15 per share in cash and special stock, the
companies said in a joint statement on Monday.
EMC shares were up 3.9 percent at $29.08 in premarket trading.
The deal will help the world's No.3 PC maker tap into the
faster-growing and lucrative market for managing and storing
data for businesses amid waning demand for personal computers
globally.
Dell said it would pay $24.05 per share in cash and the rest in
a special stock that tracks the value of a portion of EMC's
economic interest in VMware Inc, the virtualization software
company majority-owned by EMC.
"The combination of Dell and EMC creates an enterprise solutions
powerhouse," said Michael Dell, who will lead the combined
company as chairman and chief executive.
EMC is also planning to seek out other suitors, people familiar
with the matter told Reuters on Sunday.
EMC's board has approved the merger agreement and intends to
recommend that the company's stockholders approve the deal.
The deal will be financed through a combination of new equity
from Michael Dell, MSD Partners, Silver Lake and Singapore
state-owned investor Temasek Holdings as well as the issuance of
the tracking stock, new debt and cash on hand.
VMware will remain an independent, publicly traded company.
VMware shares were unchanged at $78.65.
(Reporting by Abhirup Roy and Devika Krishna Kumar in Bengaluru;
Editing by Kirti Pandey)
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