It's official: Dell completes $60bn merger with EMC

Dell Technologies is now the largest privately held IT organisation on the planet

Today is the day that Dell Technologies takes shape. It’s been nearly a year since the $60bn deal was announced, representing the largest acquisition in IT history. From today, Dell officially merges with EMC, which brings with it a veritable smorgasbord of other businesses, including VMware, SecureWorks, Pivotal, Virtustream, and RSA.

The combined juggernaut is now the largest privately held company on the planet and a powerhouse across a dizzying array of technology markets, from PCs and laptops to cloud infrastructure and data centres.

"We are at the dawn of the next industrial revolution. Our world is becoming more intelligent and more connected by the minute, and ultimately will become intertwined with a vast Internet of Things, paving the way for our customers to do incredible things. This is why we created Dell Technologies. We have the products, services, talent and global scale to be a catalyst for change and guide customers, large and small, on their digital journey."

On the eve of the transaction, Dell released its second quarter results. The company reported revenue of $13.1bn, an increase of 1% year-over-year. Operating income stood at $63m, reversing an operating loss from the same period a year ago. Non-GAAP operating income stood at $752m, up 32% YoY.

“We executed well in the quarter driving $880 million in adjusted EBITDA, up 31 percent,” said Tom Sweet, chief financial officer, Dell Inc. “Our second quarter results underscore our ability to consistently balance growth and profitability, and strategically invest in areas that will drive long-term profitable growth and strong cash flow.

The decent set of results are perhaps the most overshadowed financials in history. All eyes are now firmly on Dell Technologies. With most competitors shedding weight in order to become more agile, the mega-merger flies in the face of today’s received wisdom. There are still many questions around how Michael Dell will bring his elite army of technologies under one roof. With significant account management and product overlaps, there will be much to do if Dell Technologies is achieve its ambition of becoming a one-stop shop for the world’s enterprise IT needs.

 

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