EMC Corp. (EMC - Free Report) and Dell Inc. yesterday announced that the impending merger of the two entities will finally close on Sep 7, 2016.
The decision follows regulatory approval from China’s Ministry of Commerce (MOFCOM), which was the last hurdle before the closure of the deal.
The new company, named Dell Technologies, will commence operations immediately after the transaction closes. Michael Dell will take over the roles of chairman and CEO at Dell Technologies. As he puts it “This is an historic moment for both Dell and EMC. Combined, we will be exceptionally well-positioned for growth in the most strategic areas of next generation IT including digital transformation, software-defined data center, converged infrastructure, hybrid cloud, mobile and security.”
In Oct 2015, Dell had announced plans to take over EMC in a record $67 billion cash and stock deal. Per the terms of the deal, EMC shareholders will receive $24.05 per share in cash along with tracking stock related to a portion of EMC’s economic interest in VMware, Inc. . Based on EMC’s estimated outstanding shares at the close of transaction, stockholders are likely to get 0.111 shares of new tracking stock for each EMC share.
Following the merger on Sep 7, EMC will be delisted from the New York Stock Exchange, while the new tracking stock will start trading on the same day with the ticker ‘DVMT’.
This deal is a positive for EMC investors as its core data storage business has been struggling for a while due to growing competition from flash storage peers such as Nimble Storage, Inc. , SanDisk Corp, Western Digital Corp (WDC - Free Report) and others.
As a result of the buoyed investor sentiments, EMC shares were up 1.12% in yesterday’s trading session.
At present, EMC is a Zacks Rank #4 (Sell) stock.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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EMC Corp. (EMC - Free Report) and Dell Inc. yesterday announced that the impending merger of the two entities will finally close on Sep 7, 2016.
The decision follows regulatory approval from China’s Ministry of Commerce (MOFCOM), which was the last hurdle before the closure of the deal.
The new company, named Dell Technologies, will commence operations immediately after the transaction closes. Michael Dell will take over the roles of chairman and CEO at Dell Technologies. As he puts it “This is an historic moment for both Dell and EMC. Combined, we will be exceptionally well-positioned for growth in the most strategic areas of next generation IT including digital transformation, software-defined data center, converged infrastructure, hybrid cloud, mobile and security.”
In Oct 2015, Dell had announced plans to take over EMC in a record $67 billion cash and stock deal. Per the terms of the deal, EMC shareholders will receive $24.05 per share in cash along with tracking stock related to a portion of EMC’s economic interest in VMware, Inc. . Based on EMC’s estimated outstanding shares at the close of transaction, stockholders are likely to get 0.111 shares of new tracking stock for each EMC share.
Following the merger on Sep 7, EMC will be delisted from the New York Stock Exchange, while the new tracking stock will start trading on the same day with the ticker ‘DVMT’.
This deal is a positive for EMC investors as its core data storage business has been struggling for a while due to growing competition from flash storage peers such as Nimble Storage, Inc. , SanDisk Corp, Western Digital Corp (WDC - Free Report) and others.
As a result of the buoyed investor sentiments, EMC shares were up 1.12% in yesterday’s trading session.
At present, EMC is a Zacks Rank #4 (Sell) stock.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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