Dell Announces $24 Billion Deal to Go Private

The last couple of weeks have been fraught with rumors regarding a Dell buyout. Word that Dell was looking to go private once more started doing the rounds in mid-January. More recent rumors pointed to sizable investments from Silver Lake and Microsoft as well as Michael Dell himself. Bloomberg this morning reported that the Dell board met last night to vote on the deal, and it seems all went according to plan, as Dell has just announced a $24 billion deal to go private.

Dell said in a statement today that shareholders would receive $13.65 in cash for each share of Dell common stock as part of the transaction, which is valued at $24.4 billion and financed by CEO and founder Michael Dell and Silver Lake. The deal represents a 25 percent increase on the Dell's closing share price of $10.88 on January 11 (January 11 being the day rumors of the buyout first hit the web). Though the company is barely mentioned in the release, Microsoft did contribute to the financing for this deal and Dell confirmed that Redmond put forth a $2 billion loan.

"I believe this transaction will open an exciting new chapter for Dell, our customers and team members. We can deliver immediate value to stockholders, while we continue the execution of our long-term strategy and focus on delivering best-in-class solutions to our customers as a private enterprise," Dell CEO Michael Dell said in a statement today.

"Dell has made solid progress executing this strategy over the past four years, but we recognize that it will still take more time, investment and patience, and I believe our efforts will be better supported by partnering with Silver Lake in our shared vision. I am committed to this journey and I have put a substantial amount of my own capital at risk together with Silver Lake, a world-class investor with an outstanding reputation. We are committed to delivering an unmatched customer experience and excited to pursue the path ahead."

Dell's board approved the merger agreement unanimously when it came time to vote on the deal. Dell says Michael Dell recused himself from all board discussions and from the vote regarding the transaction. The buyout is still subject to the usual regulatory approvals but is expected to close before the end of the second quarter of Dell’s FY2014.

Contact Us for News Tips, Corrections and Feedback                 

Create a new thread in the US News comments forum about this subject
This thread is closed for comments
16 comments
    Your comment
    Top Comments
  • nieur
    I think it will allow company to make brave decisions
    10
  • Other Comments
  • nieur
    I think it will allow company to make brave decisions
    10
  • xpeh
    lol. Silver Like
    5
  • p05esto
    Dell servers are among the best and their Precison workstation laptops are not too shabby either. I've never had a problem with Dell service (just the opposite). So overall, as far as PC vendors go who else is better, who else provides good enterprise hardware? Maybe HP, but they have their own problems which seem worse in my opinion.
    7