Computer business and former smartphone manufacturer Dell Inc. is being bought back by the company founder in partnership with an investment firm. Michael Dell, who’s currently CEO of the business, is working with Silver Lake to turn the business into a private company.
The deal is subject to regulatory approval and also involves a formal process in which the board of directors looks for alternative offers. If approved, the acquisition is expected to be completed by the autumn.
Michael Dell said “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.”
The transaction is valued at approximately $24.4 billion.