Dell-EMC merger on track as 'go shop' period ends

RSA chief issues update to staff as Dell forges ahead with takeover

Dell's $67bn (£44.2bn) takeover of EMC has taken a step forward as the "go shop" period in which other parties could submit a better offer closed on Friday night.

The bid Dell made for EMC in October included a clause which meant EMC could search for and accept a better offer than the one Dell posed, but at the time, EMC's chief executive Joe Tucci said the sheer scale of the deal meant it would be unlikely to happen.

EMC said "no acquisition proposals were received or deemed to constitute a superior proposal to the existing merger agreement".

Dell's takeover is due to close between May and October next year, after customary conditions – such as regulatory and shareholder approval – are met.

EMC reiterated the benefits it thinks merging with Dell will bring.

"With the 'go shop' period now expired, EMC will continue to work with Michael Dell, MSD Partners and Silver Lake to pursue the combination of Dell and EMC," it said.

"Once completed, the new business promises to be an enterprise powerhouse, with highly complementary routes to market, that will help customers drive their digital transformations and journeys to the hybrid cloud.

"Under Dell's privately controlled structure, the combined company will have more freedom to innovate and invest for long-term leadership, allowing for the widest range of technology choices to customers, while building out an aligned global ecosystem of partners."

RSA update

Throughout the takeover process, EMC has filed transcripts of all communication regarding the deal with the US Securities and Exchange Commission (SEC).

In the latest filing, the firm outlined a recent update RSA's president Amit Yoran gave to staff.

He said RSA employees have been keen to know the upshot of Michael Dell spending "a few hours" at the firm's offices.

"Lots of people have been asking about the purpose of the meeting, how it went and what my thoughts were," he told staff in the email. "Michael has been spending time meeting with our executive team and getting to know the RSA business a bit better.

"Over the past few weeks I have had several opportunities to spend time with Michael, ranging from dinners and meetings to one-on-one conversations.

"I have found him to be pragmatic and insightful, which shouldn't come as a surprise given what he has accomplished already. It is also very clear that he cares deeply about security. He has had good exposure to the market over the years in running Dell, but also through his involvement in Dell Secureworks.

"The relationship between Dell and Secureworks was thoughtfully constructed to create leverage. Michael is also aware of our transformation activities and very supportive. He is keen to continue learning more about RSA and come up with meaningful ways EMC, Dell and he can contribute to our success in the future."

Yoran added that RSA becoming private under the Dell deal will be good news.

"Not surprisingly, [Dell] is also very articulate about the benefits of operating as a private company, including our ability to plan and execute on a longer time horizon without the blinding focus on 90-day reporting cycles," he said.

"Having spent a vast majority of my career running private companies, I couldn't agree more. There is lots more going on at RSA to talk about, so expect another update from me over the next few days. I just wanted to get a quick note out about the meetings with Dell since many have been asking."