Dell and the EMC M&A Deal
Over a year has passed since Dell's announcement about joining forces with EMC in a merger deal. To finance the deal, Dell issued secured bonds worth $20 billion (altogether 6 issues with a fixed rate and maturities ranging from 3 till 30 years). This is how Dell Technologies (NYSE: DVMT) was officially formed in September 2016. This deal has become the largest M&A transaction in the IT sector at a total value of $67 billion. This strategic step was taken to consolidate powers. Dell is one of the largest PC producers in the world using a unique operating model based on the personal client-focused approach. EMC has experience in creating data storage systems. A large chunk of the former EMC business is now used by Dell Technologies in the form of VMware (NYSE:VMW) with its software and visualization services.
Dell Technologies’s main strategic focus is cloud products and services. This sector is a growth driver for many companies in the IT industry. The most notable IT vendors in this niche are Microsoft (NASDAQ:MSFT), IBM (NYSE:IBM), Amazon (NASDAQ:AMZN) and Google (NASDAQ:GOOG) (NASDAQ:GOOGL), whose revenues are not comparable with Dell’s. The cloud segment is the fastest growing operational area within the company, as you can see in the next part.
