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 Channel Futures

Data Centers


Full Speed Ahead for Dell-EMC Transaction Close

  • Written by Lynn Haber
  • September 6, 2016
The clock is ticking on the finalization of the Dell-EMC deal.

Dell and EMC have received regulatory approval from China, clearing the way for the former’s acquisition of the latter — scheduled for Wednesday.

Regulatory approval of the Dell-EMC transaction by China’s Ministry of Commerce (MOFCOM) granted clearance for the companies’ proposed combination. MOFCOM approval was the final regulatory hurdles to closing the transaction. EMC shareholders approved the transaction on July 19, with approximately 98 percent of voting EMC shareholders casting their votes in favor of the acquisition, representing approximately 74 percent of EMC’s outstanding common stock, according to Dell.

Eleven months after the initial news of Dell’s bid for EMC, for $67 billion at the time, the largest technology company acquisition ever, Michael Dell will soon sit at the helm of Dell Technologies, the name of the new combined entity.{ad}

“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,” said Michael Dell, chairman and CEO of Dell Technologies. “Our investments in R&D and innovation, along with our 140,000 team members around the world, will give us unmatched scale, strength and flexibility, deepening our relationships with customers of all sizes,” he said in a prepared statement.

While Dell has tried to quell any anxiety among channel partners at both companies, the road ahead is uncertain. At EMC Global Partner Summit/EMC World 2016 this past May, the impending merger with Dell was top of mind for partner attendees.

Shortly after the close of the EMC partner conference, John Byrne, global channel chief for the new Dell Technologies, sent an open letter to partners outlining a short-term channel strategy once the deal closed:

  • “Dell and EMC will continue to maintain separate deal registration and partner programs for 2016. Effective Feb. 1, 2017, we will move to a unified partner and deal-registration program.
  • “From the closing until Feb. 1, 2017, to protect partner accounts and deals, we plan for our teams to cross check all existing deal registrations to ensure that we are aligned with the partner of record. If multiple partners have the same opportunity registered, we will have rules of engagement in place to mitigate any possible adverse impact to partners and customers.
  • “We plan for your assigned partner-facing resource from both Dell and EMC to remain in place for 2016. We will coordinate our joint approach to ensure that we are all aligned as we work through the unified coverage model for 2017.”
Tags: Agents Business Models Cloud Data Centers Mergers and Acquisitions Mobility & Wireless Regulation & Compliance Security

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