EMC, Dell identify top leaders of combined company as deal moves ahead

EMC Chief Executive Joe Tucci and Michael Dell.
EMC Chief Executive Joe Tucci and Michael Dell.

Dell Inc. and EMC Corp. are outlining the executives who will run the sprawling business-computing company after their blockbuster merger is completed.

The new corporate structure, laid out in memos from EMC chief executive Joe Tucci and Dell CEO Michael Dell, was disclosed in Securities and Exchange Commission filings Tuesday.

Dell is raising nearly $50 billion in debt to finance its purchase of EMC, which was announced in October. The buyout plan, expected to close later this year, recently won approval from the European Commission and the US Federal Trade Commission.

In their memos, both executives said the deal “is on schedule under the original timetable and the original terms.”

Dell will be CEO of the company after its acquisition of EMC is complete. Tucci will retire after the deal closes. In his memo, Dell thanked the longtime EMC head for “his insights and assistance.”

David Goulden, currently CEO of EMC’s core data-storage business, will be in charge of Dell’s new “enterprise systems group.” That unit will house all of the combined company’s IT infrastructure products, including servers, data-storage, and networking equipment.

Jeff Clarke, Dell’s supply-chain head and leader of its personal computer unit, will keep those jobs in the newly merged company.

EMC president and operations chief Howard Elias will team up with Dell’s Rory Read, previously a chief operating officer and head of commercial sales, to jointly lead the “integration” work of melding the two large companies together.

EMC marketing and products president Jeremy Burton will be the combined company’s chief marketing officer. Dell’s current CMO, Karen Quintos, will become the company’s “chief customer officer,” working to draw more revenue from the company’s buyers. She also will lead Dell’s corporate social responsibility efforts.

Dell chief financial officer Tom Sweet will continue in that job. EMC previously said that its CFO, Zane Rowe, was taking over the same job at key EMC subsidiary VMware Inc.

Rich Rothberg will remain in place as Dell’s general counsel. The memos did not mention EMC general counsel Paul Dacier, who was recently named by Governor Charlie Baker to lead the state’s Judicial Nominating Commission.

Dell’s agreement to buy EMC was worth an estimated $67 billion when it was announced Oct. 12, making it the most expensive tech-industry acquisition on record. But EMC share prices have fallen since the announcement amid what analysts have said is skepticism about the deal’s prospects.

Prices for shares in VMware, which are publicly traded, have also dropped since the deal was announced. That has caused the total value of the deal to fluctuate. Part of the EMC sale price depends on the value of a complicated VMware “tracking stock” that will change in value with VMware’s overall share price.

EMC and Dell contend they will be a stronger by jointly selling EMC’s data-storage products and Dell’s business computing products, such as servers. The companies also have said that becoming a private business will remove Wall Street pressure to continually meet quarterly sales targets.

Their projected combined revenue is nearly $80 billion.

Updated 8:15 pm to correct David Goulden’s current title.