Computer manufacturer Dell has gone private with one of the biggest leveraged buyouts since the GFC in a move that will end a 24 year run on the markets.
The sale of the company to a merger between Michael Dell, the company’s founder, chief executive officer and chairman, and technology investment firm Silver Lake.
Shareholders in the company can expect to receive $13.65 in cash for each share, while the value of the sale is estimated at approximately $24.4 billion.
This decision was unanimously approved by Dell’s board of directors, who have stated that this move will help Dell to transition into more innovate designs and improve their market share. ”Michael Dell is a true visionary and one of the preeminent leaders of the global technology industry,” said Egon Durban, a Silver Lake managing partner. “Silver Lake is looking forward to partnering with him, the talented management team at Dell and the investor group to innovate, invest in long-term growth initiatives and accelerate the company’s transformation strategy to become an integrated and diversified global IT solutions provider.”
While the transaction is yet to be approved by Dell’s shareholders and is subject to customary conditions and other regulatory approvals, it’s expected to close before the end of of the second quarter of Dell’s financial year 2014.
Michael Dell said in a statement, “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 has made solid progress executing this strategy over the past four years, but we recognise 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.”