Dell Goes Private in a Deal Valued at $24.4 Billion

imgres-1Austin’s top technology company, Dell announced today that it has signed a deal with Founder Michael Dell and Silver Lake to acquire the company and take it private in a deal valued at $24.4 billion.
Under the agreement, Dell stockholders will receive $13.65 in cash for each share of Dell common stock. The price represents a 25 percent premium over Dell’s closing share price of $10.88 on Jan. 11, the last day of trading before rumor slipped out about the company going private.
The buyers will acquire for cash all of the outstanding shares of Dell not held by Mr. Dell and certain other members of management.
The transaction is expected to close before the end of Dell’s second quarter pending regulatory and shareholder approval.
“The Special Committee and its advisors conducted a disciplined and independent process intended to ensure the best outcome for shareholders,” Alex Mandl, lead director of Dell’s Board of Directors, said in a news release. “Importantly, the go-shop process provides a real opportunity to determine if there are alternatives superior to the present offer from Mr. Dell and Silver Lake.”
Dell said the transaction opens “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 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. 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.”

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