Argus Discusses Planned Dell Acquisition Of EMC Corporation

EMC Corporation EMC shareholders have voted, on a preliminary basis, very strongly in support of the acquisition of the company by Dell Inc. and its associates.

Argus’ Jim Kelleher reiterated a Hold rating on EMC Corp.

“The future brand for the newly combined entity will be Dell Technologies,” Kellher mentioned.

2Q Results

Although the company reported its 2Q results slightly above consensus, the analyst pointed out that the revenue and non-GAAP EPS growth was modest.

Kelleher believes these results highlight the challenges being faced by incumbent IT vendors who are used to supplying on-premises solutions but are not being forced to quickly make a shift in preparation of a cloud-based IT future.

Related Link: Raymond James Downgrades EMC To Market Perform

Acquisition By Dell

With regard to the preliminary vote tally from the Special Meeting of Shareholders, EMC Corp. announced that 98 percent appeared to be in favor of the acquisition by Dell and its affiliates.

The final results will be available on the 8-K form, which is expected to be filed with the SEC during the trading week ending July 22.

According to the Argus report, “CEO Joe Tucci stated that the “resounding” vote supports the companies’ view that the resultant combination will be a powerhouse in the technology industry.”

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