It’s Official: $24.4 Billion Private Deal For Dell with Microsoft’s Help

Michael Dell has finally sealed the deal, taking the company into private hands and off the publicly-traded stock market over this last weekend. While Dell holds the majority of the company in cash and equity funds from Silver Lake and MSD Capital, Microsoft loaned them $2 billion dollars, plus debt financing from a number of banks. as well Dell’s invested his own capital. Dell shareholders with be paid back $13.65 per share, up 25% up from mid January.

In hopes of  leaving a legacy, Dell released a statement about the purchase saying:

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 shared their support and excitement of the purchase stating they are “in an industry that is constantly evolving” and “are committed to innovating and driving business for their devices and services built on the Microsoft platform.”

Michael Dell has been broaching the idea of going private since last August in 2012. He hopes this move will invigorate the PC market and spend less time dealing quarterly with shareholders.

Credits to The Verge for report support.


Rachel Gilliland

Toronto Professional Services Team