EMC Corporation’s CEO Joe Tucci penned a letter on the company's blog page about the corporate software, storage, and security giant’s merger with Dell.
After Dell reached terms to buy EMC for about $67 billion on Monday, Tucci published a piece outlining why the deal – which he referred to as a "bittersweet announcement" – is happening and what it means.
In the past 25 years, EMC has transformed from a storage startup to a global technology leader with more than 70,000 staffers. Now the company is entering a new era, where the entire IT industry is experiencing "massive disruption, while simultaneously being presented with unprecedented opportunity," Tucci wrote.
He explained that the deal with Dell is taking place to keep EMC growing and thriving through the IT industry’s changes. Tucci ran through a laundry list of the deal’s benefits, including the creation of a "powerhouse" in the tech industry with more than $80 billion in revenue; and said the combined organization will be a leader in a number of the "most attractive high-growth areas" of the $2 trillion information technology market.
In addition, the combined outfit will have complementary product portfolios, expanded market reach, as well as what Tucci calls "four of the world’s greatest technology franchises" – servers, storage, virtualization, and PCs.
It will also bring together strong capabilities in the "hottest IT trends," such as digital transformation, the software-defined data center, hybrid cloud, converged infrastructure, mobile, and security.
"The combined company will be more efficient and effective to operate as a private company, giving us the ability to incubate and develop new products and solutions necessary to capitalize on the opportunities I just mentioned," Tucci added. "It will have more freedom to invest for the long term, an increased focus on our customers and, very importantly, the ability to attract and retain the best and brightest people."
Tucci noted that he is "excited to be able to reward our EMC shareholders in such an attractive way."
He also emphasized the opportunities in areas such as cloud and security. As part of the deal, VMware will remain an independent, publicly-traded company.
Tucci will stay actively involved as EMC CEO until the transaction is closed, at which point Dell boss Michael Dell will be chairman and CEO of the combined group. The deal, expected to close between May and October 2016, will be the biggest in history between two tech companies.
Analysts such as Alberto Moel, senior research analyst at Sanford C. Bernstein, are positive about the deal, telling media outlets that the acquisition of EMC will support Dell's shift in focus toward the corporate enterprise segment.
Representatives from Dell and EMC were not immediately available for comment.