Dell Plans To Go Private In A $24.4 Billion Deal

On Tuesday, Dell Inc. announced that it will go private in a $24.4 billion deal led by its founder, Michael Dell, and the investment firm Silver Lake.  If successful, this deal would be the biggest leveraged buyout since the financial crisis.

According to the terms of the deal, the buyers, which includes Microsoft, will pay $13.65 a share in cash, which is about 25 percent above the number that Dell stock traded before it was revealed that the company was negotiating its sale.

"I believe this transaction will open an exciting new chapter for Dell, our customers and team members," Mr. Dell said in a statement. "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."

As a private company, Mr. Dell will have more control over the enterprise that he founded in a college dorm back in 1984 as it seeks to revitalize. Like other PC's, Dell revenue and stock has been on the decline in recent years. In turn, Microsoft has also suffered from losses from a lack of sales of its Windows operating system to makers of desktop and laptops.

Egon Durban, a managing partner at Silver Lake, said in a statement, "Michael Dell is a true visionary and one of the pre-eminent leaders of the global technology industry. Silver Lake is looking forward to partnering with him, the talented management team at Dell and the investor group to innovate, invest in long-term growth initiatives and accelerate the company's transformation strategy to become an integrated and diversified global I.T. solutions provider."