EMC stockholders will receive about $33.15 per share cash and stocks

Dell has announced it is taking over EMC in record-breaking $67bn deal

Dell has announced a deal to buy data storage company EMC for $67 billion in the biggest tech takeover in recent years.

The new combined business will create the world's biggest privately held integrated technology company, and will combine Dell's PC business with EMC's data center and 'cloud' services.

'We're creating an unbelievable powerhouse of an enterprise company,' said Dell Chairman and CEO Michael Dell.

'We're creating an unbelievable powerhouse of an enterprise company,' said Dell Chairman and CEO Michael Dell of the merger

WHAT THE NEW FIRM WILL DO Dell hopes the move will raise its profile in data centers, 'factories of the digital age' that house vast numbers of servers, networking gear and storage systems. It will shift Dell's focus away from the PC sales amid fears the market is dwindling. Advertisement

'This is really all about bringing together complementary technologies and helping our customers address the challenges and opportunities that this digital future is creating,' he told CNBC.

'Our new company will be exceptionally well-positioned for growth in the most strategic areas of next generation IT including digital transformation, software-defined data center, converged infrastructure, hybrid cloud, mobile and security.'

Dell will serve as chairman and CEO of the combined company.

Joe Tucci, chairman and CEO of EMC, will remain in those roles until the deal is complete.

FBR analyst Daniel Ives said the deal means Dell is 'no longer your grandma's PC company.'

'It's a landmark, historic deal that really brings them into the enterprise market and makes them a behemoth,' said FBR analyst Daniel Ives.

EMC stockholders will receive about $33.15 per share which includes cash and a tracking stock linked to part of the company's economic interest in its VMware business.

That amounts to a 19 per cent premium to EMC's Friday closing price of $27.86.

Cloud computing company VMware Inc., a subsidiary of EMC, will stay an independent, publicly traded company.

The deal marks the largest technology takeover in recent years.

It beats U.S. computer chip maker Avago Technologies recent deal to buy rival Broadcom for $37billion, which is still going through, and is more than three times more then what Facebook agreed to pay for messaging service WhatsApp last year.

Dell have announced a deal to buy data storage company EMC for $67 billion in the biggest tech takeover in recent years (stock picture)

EMC stockholders will receive about $33.15 per share which includes cash and a tracking stock linked to part of the company's economic interest in its VMware business (stock picture of EMC's offices)

'Our new company will be exceptionally well-positioned for growth in the most strategic areas of next generation IT including digital transformation, software-defined data center, converged infrastructure, hybrid cloud, mobile and security,' Mr Dell added in a written statement.

Joe Tucci will remain chairman and CEO of EMC until the deal is complete where Michael Dell take over those roles in the new combined company.

FIVE MOST EXPENSIVE TECH DEALS IN RECENT YEARS 1. Dell buys data storage company EMC in $67billion deal

2. U.S. computer chip maker Avago Technologies' buys rival Broadcom for $37billion in a deal that is still going through

3.Facebook bought messaging service WhatsApp in 2014 for $19bilion

4. Google bought Motorola Mobility in 2011 for $12.5billion which included 17,000 patents for wireless communications

5. Microsoft bought video-calling service Skype for $8.5billion in 2011 - beating bids from Google and Facebook Advertisement

Founded in Hopkinton, Massachusetts nearly 40 years ago, EMC has been one of the last big East Coast tech firms.

The combined enterprise systems business headquarters will be at the EMC offices, while Dell Inc.'s headquarters will stay in Round Rock, Texas.

EMC has struggled to survive over the past decade as the cost of data storage has dropped dramatically and its shares had tumbled more than 12 per cent before news of the merger was announced.

As a whole it had been valued at about $53.6 billion on close of business on Friday.

Since then, the company's stock has risen more $1.34, or 4.8 percent, to $29.20 in pre-market trading about two hours before the market opened on Monday.

EMC's major value is in its 81 per cent stake in VMware which produces virtualization software and is valued at around $33 billion.

Since going private in 2013, Dell Inc. has been investing in research and development and growing its software and services business as those in the technology industry continue to struggle with soft PC sales.

Their most recent takeover could be seen as a risk as it will see them acquire a huge amount of debt and make Dell bigger at a time when many tech companies are breaking themselves apart to focus on a niche in the market.

But Dell are confident that this one-stop shop deal will secure a bright future for the technology firm - and are wiling to pay a record-breaking sum to make that happen.

Dell's offer, which was approved by EMC's board, is targeted to close in the second or third quarter of Dell's fiscal year ending February 3, 2017. It still needs approval from EMC shareholders.