Dell buyout finalized, Dell sold to Silver Lake and founder Michael Dell for $24.4 billionBy Angel Cuala on Feb 6, 2013 in Business, Technology, United States •
The Dell buyout has been finalized, ending weeks of rumors of Dell deciding to go back to private. Dell Inc. is now selling the company to Silver Lake Partners and to Michael Dell, the company founder, Chairman, and CEO, for approximately $24.4 billion, along with $2 billion from Microsoft. Stockholders will receive $13.65 per share.
Image Credit: Dell.com
According to a press release by Dell on its official website on Tuesday, February 5, 2013, a Special Committee was formed after Michael Dell first approached the personal computer company’s Board of Directors back in August 2012, citing its interest to sell the company to a private firm.
As noted in the announcement, the selling price was 25 percent higher than Dell‘s closing share price of $10.88 last January 11, which is the last trading day before the Dell buyout rumors started. Mr. Dell, 47, who founded Dell in 1984 when he was 19 years old, now owns around 14 percent of Dell‘s common shares.
“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 was quoted at Dell.com.
“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.” Mr. Dell added, who will still be the company Chairman and CEO.
“Michael Dell is a true visionary and one of the preeminent leaders of the global technology industry. 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.” Egon Durban of Silver Lake Partner said.
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