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Dell Goes Private As Shareholders Approve $25 Billion Deal

Dell has announced that its shareholders have approved a $25 billion deal to take the company private. Dell founder, chairman and CEO Michael Dell will acquire the company he founded almost 30 years ago in partnership with Silver Lake Partners. Stockholders will receive $13.75 per share of common stock plus a cash dividend of $0.13 per share for a total of $13.88 per share. In addition, there's also a guaranteed third quarter dividend of $0.08 per share that will be paid at or before closing. The total transaction is valued at approximately $24.9 billion.

Michael Dell has been working on a deal to take his company back private for a long time. The company announced plans to go private in partnership with Silver Lake Partners way back in February. Seven months later, the deal has finally been approved (though it's a little more than the $24.4 billion Dell talked about earlier this year).

"I am pleased with this outcome and am energized to continue building Dell into the industry’s leading provider of scalable, end-to-end technology solutions," said Michael Dell, chairman and CEO of Dell. "As a private enterprise, with a strong private-equity partner, we’ll serve our customers with a single-minded purpose and drive the innovations that will help them achieve their goals."

Mr Dell went on to say that the company will continue to expand its enterprise solutions and services business. Right now, the company's bread and butter is PC sales but it's hoping to shift some of its focus away from the PC and mobile markets and focus more on the enterprise segment. Going private gives Dell the room to shake things up and make some really bold moves without shareholder scrutiny.

The deal is expected to close by the end of Dell's FY2014Q3 provided it passes the usual regulatory approvals.

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  • anxiousinfusion
    I have never been a fan of Dell's proprietary shenanigans but this is very good news! Glad for them.
    Reply
  • atminside
    So does this mean "Dude you are getting a dell!" is coming back?
    Reply
  • Philippe Leblanc
    My hope is this will allow dell to revamp it's products. Instead of delivering products based on the bottom line, they can actually develop stuff that's a bit higher quality. Not to say there isn't a place for budget systems, but some premium offerings would be nice as well where quality is put ahead of profit.
    Reply
  • m32
    It seems like Dell is going to die a slow death..... I hope I'm wrong. It's main target just isn't something for me to look at (enterprise).
    Reply
  • derekullo
    Dude, Dell's getting his company back.
    Reply
  • abbadon_34
    Dude, Dell's getting Dell
    Reply
  • Rhinofart
    Enterprise is where the money is folks. The company I work for has a 4 year rotation for replacing server clusters. So every single year we're giving dell over $1mil for the refreshes. They should seriously dump the consumer crap they have been peddling for years to make the shareholders happy, and concentrate on making the business / enterprise stuff just that little bit better.
    Reply
  • p05esto
    Seriously guys, I can't believe the hate on Dell. Their high end monitors are pretty much the best in the business, by a long shot. And can you think of a higher end laptop workstation than the M6700? Nothing comes close (yea, I know it costs $5k, but that's not the point). Also, in the datacenter I work, 90% of all our servers are Dell, they are rock solid..... what's better? HP? No way man! You guys need to think beyond the cheap PCs and realize Dell has a lot of high end and enterprise stuff. I have no problem with Dell at all.
    Reply
  • ceh4702
    I am looking at a dell monitor now and I have a dell computer on my desk at work. I like their precision monitors. we buy 100's of computers from Dell every year.
    Reply
  • jezus53
    11527468 said:
    Seriously guys, I can't believe the hate on Dell. Their high end monitors are pretty much the best in the business, by a long shot. And can you think of a higher end laptop workstation than the M6700? Nothing comes close (yea, I know it costs $5k, but that's not the point). Also, in the datacenter I work, 90% of all our servers are Dell, they are rock solid..... what's better? HP? No way man! You guys need to think beyond the cheap PCs and realize Dell has a lot of high end and enterprise stuff. I have no problem with Dell at all.

    It's because they are buying the cheap crap on black Friday. I got a dell for college five years ago, a middle tier Latitude d530. Thing had a horrible resolution of 1024x768. But God damn was it solid. My dog knocked a huge glass of water on it, I accidentally spilled soda and then my other dog knocked another cup of water on it. No problems what so ever. I got a new laptop just because the screen res was terrible. Other wise it was a champ. I used it for a while as a temporary desktop while my main was broken. My fiancee uses it now and the thing can even handle Sims 3. Had no idea it was that good. Anyways, point being Dell actually has decent computers as long as you don't buy the crap $300 ones. Every company has them and to judge them on it is stupid. You have to look at the whole spectrum.
    Reply