Dell buyout is now official

The Dell buyout is now official
The Dell buyout is now official
CEO Michael Dell and Silver Lake Partners will take Dell private in a $24.4 billion buyout deal.

Dell Inc. announced today that Michael Dell (Dell's Founder, Chairman and CEO) will buy out Dell for a sum of approximately $24.4 billion. The deal would presumably allow Mr. Dell to move forward with turning his struggling company more into an enterprise services company without having to worry about quarterly results and interference from Wall Street. Dell Shareholders will receive $13.65 per share - a plus of about 25 percent over the share price before news of a possible deal leaked mid-January. Michael Dell, who will "continue to lead the company" will finance part of the buyout using his own funds, but also partner with Silver Lake (a private equity firm) and Microsoft. In addition, several banks will provide debt financing. According to the announcement, the deal should close before the end of the second quarter of Dell’s FY2014.

Dell's two main competitors reacted vastly different: while Lenovo released a statement to TechRadar saying that the deal would not "substantially change" their outlook, Hewlett-Packard Co criticized Dell in their press release, claiming that Dell's deal would "leave existing customers and innovation at the curb," and vowed to "take full advantage of that opportunity."

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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2013 02 > Dell buyout is now official
Author: Bernhard Pechlaner, 2013-02- 5 (Update: 2013-02- 6)