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Dell's blockbuster $67 billion deal to buy EMC overshadows all M&A 2015 activity in data storage, rendering deals for SanDisk, Veritas and other vendors to also-ran status.
The historic $67 billion Dell acquisition of EMC, announced on Oct. 12, overshadowed every other merger and acquisition (M&A) in the data storage world in 2015 -- and any other year, too.
The offer by Dell's CEO and founder Michael Dell, MSD Partners and the Silver Lake investment firm marked the largest-ever transaction in the IT industry. That blockbuster deal and other storage-related M&A activity in 2015 signaled the deepening level of disruption in the IT industry. Public cloud providers have exerted pressure on long-established vendors; and new software-defined, hyper-converged and converged infrastructure models, infused with flash, have challenged the traditional model of networked disk arrays.
Dell will gain a controlling interest not only over EMC's enterprise storage assets, but also EMC's VMware business, which will remain a publicly traded company, as well as its Pivotal, RSA Security, VCE and other federated ventures. No other suitors emerged during the 60-day window in which they could make a better offer. The deal is scheduled to close between May and October in 2016.
In the combined company, Dell will bring to the table server and storage products targeted primarily at small and medium-sized businesses (SMBs), as well as small enterprises; EMC's diversified storage offerings will extend its market reach to the largest of IT organizations. Dell faces decisions about how to proceed with overlapping product lines, such as its SC Series, PS Series and EMC's VNX storage arrays.