With news surrounded in the air from quite some time that what will happen with Dell, i.e. how and in what way it will turned out to be private and the company today announced that it has entered into an agreement to be acquired by Michael Dell and Silver Lake. Dell goes private in $24.4 billion deal.
Under the terms of the agreement, Dell stockholders will receive $13.65 in cash for each share of Dell, in a total transaction value of $24.4 billion, means a premium of 25 percent over Dell’s closing share price of $10.88 on Jan 11, 2013.
Mr. Mandl, lead director of Dell’s Board of Directors, said: “The Special Committee and its advisors conducted a disciplined and independent process intended to ensure the best outcome for shareholders. Importantly, the go-shop process provides a real opportunity to determine if there are alternatives superior to the present offer from Mr. Dell and Silver Lake.”
The transaction will be financed through a combination of both cash and equity paid by Michael Dell while cash funded by investment funds affiliated with Silver Lake, cash invested by MSD Capital, L.P., a $2 billion loan from Microsoft with what good to note that there is no financing condition.
Highlights of the move:
- Dell stockholders to receive $13.65 per share in cash
- Transaction valued at approximately $24.4 billion
- Transaction implies a 37 percent premium over the average closing share price during the previous 90 calendar days ending Jan. 11, 2013