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Dell's acquisition will help computer maker shift to cloud services (Photo: Dell)

Dell will acquire EMC for 67 billion dlrs, the two companies said in a press release Monday. The move, which had been rumored for weeks, "will create the world's largest privately controlled, integrated technology company," the two corporations said.

Dell, one of the world's biggest makers of computer hardware, and cloud specialist EMC will, together have leading positions in servers, storage, virtualization and PCs, the companies said. They also cited their strong joint position in software-defined data centers, hybrid clouds, converged infrastructure, mobile communications and data security.

Dell and EMC didn't say how big the sales volume of the combined company would be, but press reports put total combined sales at more than 70 billion dlrs.

"Our new company will be exceptionally well-positioned for growth in the most strategic areas of next-generation IT," said Michael Dell, chairman and CEO of Dell Inc. Michael Dell, who founded Dell Inc, took his company private in 2013 amid a continuing slowdown in its core computer hardware market.

Joe Tucci, CEO of EMC, said that, for EMC to thrive in a rapidly changing IT industry "we must create a new company for a new era." And he added: "I truly believe that the combination of EMC and Dell will prove to be a winning combination for our customers, employees, partners and shareholders.”

Michael Dell, who is Dell Inc's controlling shareholder, is acquiring EMC together with MSD Partners and Silver Lake, two investment companies. The partners and Singaporean investment company Temasek will finance the acquisition through a combination of new common stock . According to press reports, the acquisition will saddle Dell Inc with additional debt of 50 billion dlrs.

The EMC Group also includes the Vmware, Pivotal, VCE, RSA and Virtustream companies. Vmware will continue as a publicly traded company.

Once the transaction closes, Michael Dell and partners will own approximately 70 percent of the new company’s common equity. Michael Dell will lead the new group as chairman and CEO.