22 Aug EMC looks to boost security via acquisitions
These days, many of the biggest names in the technology sector are purchasing other companies to help solidify their positions as industry leaders. One firm that has been hard at work scooping up valuable contributors is EMC, which has spent quite a bit of money already and is looking to expand even more.
Bloomberg reports that over the past three years, EMC has acquired 15 firms and may have plans to spend as much as $5.65 billion on other purchases related to security technology. The Massachusetts-based firm is hoping to use the purchases of other companies and a research and development budget that exceeds $2 billion to help make its service offerings even stronger in the years to come. In an interview with the source, EMC's CEO Joe Tucci said that the entire industry was beginning to change its perceptions of the brand, as it becomes a dominate player.
"The market is now saying EMC is likely to be a consolidator and not a consolidatee," Tucci told the source.
Among the companies being looked at as potential targets for takeover are Check Point Software Technologies, according to Loomis Sayles & Company analyst Tony Ursillo, in an interview with the site. He adds that EMC is in a rare league of firms that are known to have a good eye for value-adding aquisitions.
"EMC and Oracle are arguably the two most savvy acquirers in the entire tech landscape and the two most successful," Ursillo said.
Investors seem to be extremely confident about the EMC worth. Data collected by Bloomberg showed that EMC was valued 15 times its projected earnings in 2012.
EMC made other headlines when it announced a new deal with Lenovo. Under the terms of the agreement, Lenovo will distribute its low-end storage units to customers in China. With a middle class growing rapidly, many technology firms are working to tap into the spending potential and implement products in the emerging market.