The combined company will be the world's largest privately controlled, integrated technology company, Dell said.
Data centre software company VMWare, which is currently controlled by EMC, will remain a publicly listed company and Michael Dell will take majority control of the company. The exact cost of Dell and EMC deal will depend on the value of VMWare's shares.
Michael Dell founded Dell in 1984 and it became publicly listed in 1998. In 2013 he took the company private in a $25bn buyout.
"The transaction will unite Dell’s strength with small business and mid-market customers with EMC’s strength with large enterprises to fuel profitable growth and generate significant cash flows," said Dell. "The combined company will consist of strategically-aligned businesses and incubated high-growth assets, fostering innovation, enabling customer choice and attracting and retaining world-class talent."
The deal will "accelerate VMware’s growth across all of its businesses through significant synergies with Dell’s solutions and go-to-market channels," Dell said.
EMC will have 60 days to accept a better offer, as part of the deal, according to the Financial Times. This provision was designed to prevent confrontation with activist investor Elliott Management. However, Elliott Management told the FT that it approved of the "landmark transaction" that " will create a powerhouse with leading franchises across enterprise IT".
The deal is subject to both EMC shareholder and regulatory approval. If approval is received, Dell expects the deal to close between May and October 2016, it said.