The long delayed and contested buyout of Dell Computers by its founder, Michael Dell, and the private equity firm Silverlake, has finally wrapped up today.
Under the terms of the merger agreement, “Dell stockholders will receive $13.75 in cash for each share of Dell common stock they hold, plus payment of a special cash dividend of $0.13 per share to stockholders of record as of the close of business on Oct. 28, 2013, for total consideration of $13.88 per share in cash. The total transaction is valued at approximately $24.9 billion.”
Michael Dell has been trying to take the company private since at least February of 2013, but has been delayed by opposition from shareholders, including activist investor Carl Ichan. The company has endured a long run of slumping sales and profits, badly damaging its share price. Dell has said that going public is the best way to make the painful transition from a maker of personal computers to a company that sells mobile devices. He recently told the press to expect a “significant wave of tablets” from Dell. The company is also expected to focus on its enterprise business, which has been the one bright spot among its slumping consumer sales.
Related stories From Daily Tech Whip