Yesterday, the year-long rumors surrounding a potential merger of the two tech companies came to a conclusion as the former announced it would acquire the latter in a deal worth $60 billion. In order to streamline operations and integrate the resources of both companies effectively, Dell is cutting 2,000 to 3,000 jobs.
The combined company will have a workforce of 140,000, and it is still unclear how the technologies of both firms will come together in a smooth and effective manner. EMC also owns the cloud infrastructure solutions provider VMware (NYSE:VMW).
The new corporation will be named Dell Technologies and it will offer information technology to businesses. Operations will take place in Hopkinton, Mass., where EMC’s headquarters were located.
Dell Technologies will officially be the world’s largest privately controlled tech company once the deal is complete, netting $74 billion in revenue. The company, along with private investment firm Silver Lake, raised more than $40 billion in debt to complete the deal.
CEO Michael Dell believes some consolidation will occur as the companies merge due to the ongoing industry shift of storage hardware to the cloud and other IT solutions.
“With the supply chain that we have and the go-to-market strength and the scale, we feel very well positioned both in the new areas of technology and in the existing areas of technology today,” he added.
VMW stock is up 2.2% Thursday.