EMC shareholders overwhelmingly approve Dell Merger
Dell Corporation to rebrand pending merger finalisation as Dell Technologies
EMC Corporation shareholders have approved the merger with Dell Corporation, with 98% voting in favour. It's one more big step forward for the biggest tech merger in history.
The final numbers have yet to be tallied, but EMC said that the 98% of favourable votes represented 74% of outstanding shares, and that approximately 94% of shareholders voted to approve the compensation plan for EMC executives. Final numbers will be posted on EMC's investor website once all are counted.
The $67m deal was announced in October 2015, with both parties saying it would close within a year. Though the value of the merger has dropped to "just" $62bn, it's still on track to close under the original timeline, EMC said, pending regulatory approval from China.
"The board evaluated numerous alternatives to enhance shareholder value with an eye on execution and certainty and concluded that our proposed merger with Dell is by far the best outcome," said Joe Tucci, EMC chairman, said during the meeting, which was webcast last week.
The privately held new entity, Dell Technologies, will be an amalgam of Dell and EMC technologies. Dell's server, PC and storage units will meld with EMC's storage business. VMware's data centre software and virtualisation businesses, VirtuStream's enterprise cloud unit and RSA's security products will also be integrated.
The decline in demand for data storage hardware has challenged EMC, along with competitors such as Hewlett Packard Enterprise (HPE) and IBM as customers increasingly move to store information in data centres owned by the likes of Amazon and Microsoft. IBM's recently released quarterly earnings, which showed the 17th consecutive decline in quarterly revenues for Big Blue.