Computer major Dell on Tuesday announced that its Founder, Chairman and Chief Executive Officer Michael Dell, along with technology investment firm, Silver Lake will acquire all outstanding shares to take the company private in a transaction valued at around $24.4 billion.
Computer major Dell on Tuesday announced that its Founder, Chairman and Chief Executive Officer Michael Dell, along with technology investment firm, Silver Lake will acquire all outstanding shares to take the company private in a transaction valued at around $24.4 billion.
"The buyers will acquire for cash all of the outstanding shares of Dell not held by Mr Dell (Michael Dell) and certain other members of management," Dell said in a statement.
Under the terms of the agreement, Dell stockholders will receive $13.65 in cash for each share of Dell common stock they hold, in a transaction valued at approximately $24.4 billion, the statement said.
"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," Michael Dell said.
The price offered represents a premium of 25% over Dell's closing share price of USD 10.88 on January 11, 2013, the last trading day before rumours of a possible going-private transaction were first published, it added.
The transaction will be financed through a combination of cash and equity contributed by Michael Dell, cash funded by investment funds affiliated with Silver Lake, cash invested by MSD Capital, a USD 2 billion loan from Microsoft as well as debt financing that has been committed by BofA Merrill Lynch, Barclays, Credit Suisse and RBC Capital Markets and cash on hand, the company said.
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