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Michael Dell wins $25bn buyout to take Dell private

Dell becomes a private IT enterprise firm
Thu Sep 12 2013, 16:06
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PC MAKER Dell's CEO Michael Dell has won his $25bn bid to take the company he founded private, having received the green light in a shareholders' vote on Thursday.

After 14 months of uncertainty and a number of delays, the future of Dell was revealed today with its shareholders approving Michael Dell's buyout bid, in partnership with investment firm Silver Lake Partners, to take the company private.

Each Dell stockholder will receive $13.75 in cash for each share of stock they hold plus a special cash dividend of $0.13 per share.

This comes a week after Carl Icahn admitted defeat, acknowledging that the Dell CEO had beaten his bid for the company.

Of course it's still unclear what the future holds for Dell, the company, but CEO Michael Dell has said that he wanted to take the firm private to try to turn it into an enterprise IT company, something that will be easier to do without the pressure of having to report quarterly results.

Michael Dell said in a statement on Thursday, "I am pleased with this outcome and am energised to continue building Dell into the industry's leaden provider of scalable, end-to-end technology solutions.

"As a private enterprise, with a strong private-equity partner, we'll serve our customers with a single-minded purpose and drive the innovations that will help them achieve their goals."

Alex Mandl, chairman of the Special Committee added, "By voting in favor of the transaction, the stockholders have chosen the best option to maximize the value of their shares. I want to thank my fellow Committee members and the entire Board for their diligent and tireless efforts on behalf of Dell stockholders, and the stockholders themselves for the careful consideration they gave to this important matter." µ

 

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