Dell Completes $60 Billion Merger with EMC

Sep 7, 2016

Dell completed its merger with EMC Corporation today. The new merged company pushes Dell farther on its trajectory away from its roots as a computer maker in Round Rock.


Michael Dell is one of the architects of the $60 billion acquisition – the largest deal in tech industry history. He is now the CEO the newly-named Dell Technologies. Dell's core computer business, the company we've known for years, will be based in Round Rock. It's new combined data center business, Dell EMC, will be based in EMC's Hopkinton, Mass. offices.

Dell EMC will serve as the enterprise IT branch of Dell.
Credit Dell Technologies

Dell Chief Financial Officer Tom Sweet projected annual revenue for Dell Technologies to be about $74 billion, making it the third largest private companies in the U.S. according to Forbes, behind Cargill and Koch Industries.

Technology expert Rob Enderle, who used to work on acquisitions at IBM, says this is a rare deal where Dell is the smaller company buying a bigger one. But the size of EMC and Dell’s enterprise plans going forward means the center of Dell’s universe may no longer be in Round Rock.

“It looks like much of the enterprise work, or the mass of Dell, will start reporting out of Massachusetts and no longer be in Texas,” says Enderle.

"We've got the Austin headquarters. We've got the Boston headquarters," said Dell EMC President David Goulden on a conference call this morning. "We're actually a dual-headquartered company, that's global in nature. We have significant number of strategic development, R&D, manufacturing sights around the world that form part of our critical ecosystem."

Round Rock staff are no strangers to scaling up a company, but Enderle suggests the magnitude of what Dell is trying to do with EMC may inevitably pull focus to its suburban-Boston office. But, he says, the company will not lose its presence here completely.

"It's not like Dell [Round Rock] is going to be wiped out, because Dell is Michael Dell's baby, so he's certainly going to take care of it," Enderle said.

When asked about a potential shift to the Northeast, Dell spokesperson Lon Levitan said the newly-formed company will maintain the Round Rock campus.

"Central Texas absolutely will continue as an important hub of innovation for the combined company," Levitan said. "For years Dell has operated with multiple locations around the globe.”