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Dell’s EMC Acquisition Almost a Done Deal

Dell-EMC

**Editor’s Note: Please click here for a recap of the biggest channel-impacting mergers in May-June 2016.**

Just three years after Michael Dell, in a fierce battle and $24 billion later, took his company private, Dell’s next big chapter is drawing to a close.

This week, EMC shareholders overwhelmingly voted in favor of Dell’s offer to buy EMC, moving closer to a proposed Fall 2016 closing of the deal.

With 98 percent of voting EMC shareholders, representing approximately three-quarters (74 percent) of the storage giant’s outstanding common stock, in favor of Dell’s offer, first proposed in October 2015, it looks like the original terms of the deal are on track as is the timeframe for the new Dell Technologies Inc.

The transaction also is subject to regulatory approval from China and the satisfaction of customer closing conditions.{ad}

Ready or not, Dell World 2016 is scheduled for Oct. 18-20, in Austin, Texas, at which time partners are likely to learn more about their fate with the new company.

At EMC Global Partner Summit/EMC World 2016 this past May, with the impending Dell acquisition taking center stage, there weren’t enough answers in the room for partners who want to know more about what role they’ll play in Dell Technologies Inc.

It was just shortly after the EMC partner conference that Dell announced the sell off of its software division for more than $2 billion dollars. And less than two weeks ago, Dell sent an open letter to partners announcing the appointment of John Byrne as global channel leader for the combined company.

Byrne did note the following in the open letter to partners:

“I firmly believe our combined partner communities will play a critical role in the future success of Dell Technologies. In this spirit I am sharing decisions, which we expect will take effect once the combination is finalized.

  • “Dell and EMC will continue to maintain separate deal registration and partner programs for 2016. Effective Feb. 1, 2017, we will move to a unified partner and deal-registration program.
  • “From the closing until Feb. 1, 2017, to protect partner accounts and deals, we plan for our teams to cross check all existing deal registrations to ensure that we are aligned with the partner of record. If multiple partners have the same opportunity registered, we will have rules of engagement in place to mitigate any possible adverse impact to partners and customers.
  • “We plan for your assigned partner-facing resource from both Dell and EMC to remain in place for 2016. We will coordinate our joint approach to ensure that we are all aligned as we work through the unified coverage model for 2017.”

The company has since been mum about the fate of existing EMC and Dell channel executives.


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