Computer manufacturer Dell Inc will once again become a private company owned by its founder, Michael Dell, under a long-anticipated 24.4-billion-dollar delisting deal announced Tuesday.
Dell, who is currently chairman and chief executive, has long telegraphed the move, which will allow the company to focus on its struggling business model without having to appease shareholders interested in short-term gain.
"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," said Dell in a statement released by the company. "We are committed to delivering an unmatched customer experience and excited to pursue the path ahead."
Legally, the move represents the formation of a partnership between Dell and Silver Lake, a global technology investment firm, noted the company in a statement.
Investors will be able to receive 13.65 dollars for each share they own, a 25-per-cent increase over the company's January 11 closing price of 10.88 dollars. The deal is expected to close after Dell's second 2014 fiscal quarter.
Dell's board of directors agreed to the merger based on the recommendations of a special committee.
Michael Dell owns about 14 per cent of the company's common shares and will continue in his current jobs while the deal - which also allows a period during which other business options can be considered - goes forward.
Dell founded the company in his college dorm room in 1984 at the start of the PC era, turning it into the world's largest PC maker with a market capitalization that at one time was worth more than 100 billion dollars.
Most Popular Stories
- Prosecutor to Investigate Walmart Police Shooting
- GM to Announce New Jobs in Tennessee
- Mark Sanchez Suddenly a Hot QB Commodity
- Smith & Wesson Misses Target
- Emirates Hit Libyan Targets With Airstrikes
- Michael Brown Funeral: Can Americans Change the Script of Violence?
- Marco Rubio Warns Obama on Deportations
- American Killed With ISIS Fighters in Syria
- Surf's Up! SoCal Prepares for Big Storm Surf
- Ford Hires 300 at Louisville Lincoln Plant