Dell may take on less debt for EMC purchase

Dive Brief:

Improving debt market conditions could mean Dell will need to borrow less money to fund its EMC purchase, according to a report from CRN.
Dell could borrow about $43 billion, rather than the $49.5 billion the company said it would require when it announced the acquisition.
Some Dell partners say less debt may allow the company to put more money into its operations.

Dive Insight:

"When the financial situation turns in the favor of Dell or any company, theoretically, they'd have additional monies to invest in other projects. It could be products, or it could be the channel," said Jason Cherveny, CEO of Sanity Solutions, a Dell partner.

The changes are attributed to investment grade debt market yields that have fallen to their lowest level in about a year, according to bank data.

Dell has also been raising some cash in asset sales. In March, Dell agreed to sell its IT services subsidiary, Dell Services, to NTT Data for $3.06 billion.

Dell announced it would merge with data storage company EMC in October of last year in a record $67 billion deal—the largest deal ever between two technology companies. Though the deal is not yet finalized, it has passed several antitrust hurdles and the companies expect to finalize it later this year.