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.
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...