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EMC shareholders give the go ahead for mega-merger

Shareholders vote overwhelmingly in favour of the Dell-EMC merger

EMC’s shareholders have voted overwhelmingly in favour of the merger with Dell. 

It took all of 12 minutes for shareholders to approve proposed deal. Preliminary figures suggest that 98% of votes were cast in favour of the merger, representing 74% of outstanding shares.

The vote came shortly after both EMC and VMware reported their second quarter results, with both arms of the Federation beating expectations. 

Over all, EMC reported profits of $581m, or 29 cents a share, up from $487m the year before. Revenue increased 0.3% to $6.02bn.

“We had a strong second quarter and are well positioned as we look forward to combining with Dell to establish the world’s largest privately-controlled, integrated technology company,” said EMC CEO Joe Tucci. “We expect the transaction to happen under the original terms and within the originally announced timeframe.”

VMware – aka the Crown Jewel - saw profits $265m, or 62 cents a share, up from $172m in the year ago period. Revenue jumped 11.3% to $1.69bn.

When the deal was announced last October, it was worth an estimated $67bn. This has since fallen to $62bn following a degree of shareholder anxiety in recent months.

Despite significant hurdles, the executive teams at both Dell and EMC have remained steadfast; and it would appear that the dogged approach has seen them to the finishing line.

All that is left now, apart from customary red tape, is regulatory approval from Chinese authorities.

 

 

 

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