Dell to Buy EMC for $67 Billion

ell and Silver Lake to take EMC private in biggest pure-tech takeover ever; VMware to remain public

Michael Dell, founder of what once was the leading PC maker, stepped out of the limelight when he took Dell Inc. private two years ago. Now he is back with what promises to be the biggest tech deal in history, a $67 billion acquisition of EMC Corp.

Mr. Dell, in announcing the cash-and-stock deal to buy EMC, vowed to play a more central role in technology used by corporations. EMC would add the broadest line of data-storage hardware as well as data-center software from VMware Inc. and other high-profile businesses to Dell’s offerings.

The buyout of Mr. Dell’s company in 2013 enabled him to maneuver outside the public eye, and by some accounts he has revitalized Dell’s core business. The stakes held by Mr. Dell, his investment vehicle and private-equity firm Silver Lake—which is teaming up on the deal—have roughly doubled in value to about $11 billion since then, according to people familiar with the matter.

Still, Dell’s business—and that of EMC—are under relentless assault. Growth has stalled in mature categories of computer servers, data storage, networking gear and other equipment that keeps corporations running.

Mobile devices have eaten into PC sales, and cloud computing gives companies what can be a cost-effective alternative to purchasing and maintaining their own hardware and software.