Dell finalizes plan to go private with Silver Lake's help
In a move that's been much anticipated, Dell is going private. Michael Dell, along with investment firm Silver Lake, will acquire the company he founded by paying shareholders $13.65 per share in cash. The deal is valued at about $24.4 billion.
Long time partner Microsoft is a conspicuous investor with a $2 billion loan.
Michael Dell, Dell’s Founder, Chairman and Chief Executive Officer said in a statement:
“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. 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.”
Microsoft said in a statement:
“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.”
(More to follow shortly)