Dell announced a deal Monday with MSD Partners and Silver Lake to buy cloud computing company EMC for roughly $67 billion in cash and stock.
"We're creating an unbelievable powerhouse of an enterprise company," Dell Chairman and CEO Michael Dell told CNBC's "Squawk Box." "This is really all about bringing together complementary technologies and helping our customers address the challenges and opportunities that this digital future is creating."
EMC stockholders will receive about $33.15 per share in cash and a type of stock that is linked to "a portion of EMC's economic interest" in its VMware business, which will remain an independent, publicly traded company, the companies said in a statement Monday.
The transaction marks the largest technology sector deal on record, topping U.S. chipmaker Avago Technologies' $37 billion offer for rival Broadcom. That deal is still in process.
The acquisition of EMC is seen helping Dell diversify from the stagnant personal computer market and give it the scale to attack the faster-growing and more lucrative market for managing and storing data for businesses.
EMC will have a "go-shop" provision that will allow the data storage company to seek out other buyers and give EMC a discounted breakup fee if it finds a more desirable deal, EMC Chairman and CEO Joe Tucci said on "Squawk Box."
"We will do our duty to make sure we get the best deal for our shareholders and time will show," he said.