Dell has announced that it has gone private, buying back the stock from shareholders at $13.65 a share in a transaction worth $24.4 billion.
The price represents a premium of 25 per cent over Dell’s closing share price of $10.88 on 11 January, the last trading day before rumours of a possible going-private transaction were first published.
The buyers will acquire for cash all of the outstanding shares of Dell not held by Michael Dell and certain other members of management, the company has said.
The deal includes a $2 billion loan from Microsoft.
“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," said CEO Michael Dell.
"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.”
Following completion of the transaction, Dell, who owns approximately 14 per cent of Dell’s common shares, will continue to lead the company as chairman and chief executive officer and will maintain a significant equity investment in the firm by contributing his shares of Dell to the new company, as well as making a substantial additional cash investment, Dell confirms.
Microsoft looks to have made the investment to protect one of its valuable customers and ensure the PC industry doesn't disappear overnight.
It has said in a statement: “Microsoft has provided a $2 billion loan to the group that has proposed to take Dell private. Microsoft is committed to the long-term success of the entire PC ecosystem and invests heavily in a variety of ways to build that ecosystem for the future.
“We're in an industry that is constantly evolving. As always, we will continue to look for opportunities to support partners who are committed to innovating and driving business for their devices and services built on the Microsoft platform.”