Comeback Story, Dell Says It Will Go ‘Private’ For 24 Billion
After weeks of rumors, the Server Giant Dell finally announced Tuesday that it is officially planning to go private. The company will pay shareholders $13.65 a share in cash, in a deal worth about $24.4 billion.
Michael Dell, the company’s founder, is financing the deal along with private equity firm Silver Lake. Microsoft also loaned $2 billion towards the deal.
The deal still needs to be approved by the company’s shareholders.
Dell’s board met Monday night to vote on a $24 billion offer to take the company private, according to a report.
According to Bloomberg, the deal may be announced Tuesday morning. The report adds that the offer puts Dell’s value at $13.50 to $13.75 a share. Dell closed Monday at $13.27 giving it a market value of around $23 billion.
Among the backers in the plan is Microsoft, which is investing $2 billion and Silver Lake Management, which will invest $1 billion-plus. CEO and Founder Michael Dell will contribute his 15.7% stake, which is valued at $3.6 billion, and invest another $700 million, which will give him a majority stake in his company.
Reps from Dell could not be reached for comment on the report.
Reports about taking the company private began surfacing in mid-January. Dell’s stock has been up about 31% since the beginning of the year.
Taking the company private would in theory give it more freedom to pursue growth strategies without worrying about challenges from investors.
Image courtesy of Flickr, Cockrell School
