Michael Dell to buy back Dell computers in $24 billion landmark deal

Tuesday, 5 February 2013

Michael Dell to buy back Dell computers in $24 billion landmark deal

by Mike Anderson

Michael Dell, the founder of Dell computers, is set to take the company private in a landmark $24.4 billion buyout

ROUND ROCK, TX -- The world's third-largest PC manufacturer, Dell computers, is set to be taken private in a landmark buyout deal spearheaded by its founder, Michael Dell.

Together with private equity investment firm Silver Lake, Michael Dell is offering to pay $13.65 in cash per Dell stock, which equates to a cash offer of $24.4 billion for the company that carries his name.

Currently listed on NASDAQ, Dell stocks are priced significantly lower than the $56 peak seen in 2000 - the PC manufacturer has been facing increasingly steep competition from Asia and also witnessed a significant shift away from PCs to tablet PCs and smartphones. The buyout offer, however, represents a 25% premium over Dell's valuation in January, the company confirmed.

Michael Dell, who is also chief executive and chairman of the company, already has a 14% stake.

His buyout of the remainder will be financed by loans from four banks, and a $2bn loan from Microsoft.

The deal is set to be the biggest private equity-backed leverage buyout since Blackstone Group LP's takeout of the Hilton Hotels Group in July 2007 for more than $20 billion.

Analysts expect the deal to complete before the end of July this year.

Source: Bloomberg
News video: Dell Taken Private in $24.4 Billion Buyout Deal

Dell Taken Private in $24.4 Billion Buyout Deal

Feb. 5 (Bloomberg) -- Dell Inc., the world’s third-biggest maker of personal computers, is going private in a deal valued at $24.4 billion, undertaking the biggest leveraged buyout since the financial crisis. Chief Executive Officer and founder Michael Dell and Silver Lake Management LLC will...

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Twitter

TERENCE_TAM Is Michael #dell burning cash through R&D for innovative purposes or looking to buy back shares at a lower valuation? - 2 days ago

azizonomics Of course, Michael Dell said Steve Jobs needed to liquidate Apple and give money back to shareholders and he was wrong about that... - 4 days ago

allanbourdius @SARosado Conspiratorial view? Spillover effect of Michael Dell's bid to take Dell back private… - 5 days ago

Smartersolutio1 @RichMcCourt someone told me that Michael Dell had come back to Dell. He wanted to fix things... - 5 days ago

motzjj @arstechnica @motzjj: Michael Dell: You should sell off the assets and give the money back to the shareholders. Ring a bell? - 5 days ago

motzjj @BBCWorld Michael Dell: You should sell off the assets and give the money back to the shareholders. Ring a bell? - 5 days ago

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