[NEW YORK] Dell Inc will announce Monday that it's acquiring data storage company EMC Corp, according to a person familiar with the matter.
Dell plans to pay slightly more than US$25 a share in cash, plus tracking stock in cloud software company VMware Inc valued at about US$8 for each EMC share, said the person, who asked not to be identified because the matter isn't public.
The deal hasn't been signed yet because the parties as of late Sunday were still negotiating a so-called collar around the VMware stock, the person said. In a stock merger agreement, collars offer buyers and sellers protection against steep fluctuations in the price of a security in the time between signing the deal and closing.
Spokesmen for Dell and Hopkinton, Massachusetts-based EMC didn't immediately respond to messages seeking comment.
The deal, among the largest ever in the technology sector, would create a computing giant combining EMC's leadership in digital storage, with Dell's share of the market for servers, which businesses use for computing tasks.
Dell, which is based in Round Rock, Texas, was working last week to raise about US$40 billion in financing from banks including JPMorgan Chase & Co, Barclays Plc, Bank of America Corp, Credit Suisse Group AG, and Deutsche Bank AG, people familiar with the matter said at the time.