Dell shocked the IT world in October by announcing it was planning to buy data storage company EMC Corp. for $67 billion. Here's what the company has done so far to get ready for the EMC acquisition.
This is the biggest information technology deal in history and would help turn Dell into a "behemoth" in the data storage market, analysts say.
Looking to shed debt ahead of the EMC acquisition, Dell said in a securities filing that it planned to take SecureWorks, its cybersecurity business unit, public. Dell acquired SecureWorks in 2011 for $612 million.
Seeking to quash investor concern that the Dell acquisition of EMC might not go through, the CEO of EMC Joe Tucci said during its fourth quarter earnings conference call that the deal was on track and would close on time. The original timeline called for the acquisition to close between May and October of this year.
In a deal valued at just over $3 billion, Dell sells its IT services division, known as Dell Services, to NTT Data Corp. It used to be known as Perot Systems and was owned by former presidential candidate Ross Perot. This is all part of an effort to raise cash ahead of the EMC deal.
The Wall Street Journal reports that Dell plans to schedule its initial public offering for SecureWorks some time this month. SecureWorks will sell only a small portion of itself in the IPO, the Journal reports. They are seeking a valuation of just under $2 billion and expect to raise just over $150 million.
About the Author
