October 30, 2013
Dell Goes Private With Closing Of $25 Billion Buyout
redOrbit Staff & Wire Reports - Your Universe Online
Following several months of tough negotiations, computer maker Dell Inc. announced on Tuesday that its $24.9 billion sale to founder Michael Dell and investment firm Silver Lake has finally closed.The deal means that Dell is now a private company, and shares of the company’s stock were delisted at the end of the day.
An original buyout offer of $24.4 billion was proposed by Mr. Dell and Silver Lake in February, but was opposed by some shareholders, including Carl Icahn, who made several counteroffers to take the company private.
Icahn ultimately conceded, and shareholders voted in favor of the revised deal in September.
Michael Dell, who now controls 75 percent of the Round Rock, Texas-based computer giant, said he believes that taking the company private would remove the pressure of answering to shareholders, and give executives additional flexibility in making decisions.
The company has committed to retaining its existing product lines, and re-entered the tablet-device market earlier this month with its new Venue tablets. It has also refreshed its laptop products while reducing the number of models in its overall product portfolio.
Bobbi Dangerfield, Dell’s vice president of commercial sales operations, said last week that the company would remain focused on the midmarket while broadening the reach of its commercial products worldwide.
Dell is opening two facilities next year in Brazil and Dubai, where customers will be able to test software, servers and other products prior to deployment. The company already has 14 of these centers throughout the world.
Dangerfield said the company would also work to improve its customer service operations, with a focus on providing more tailored remote support.
“Today, Dell enters an exciting new chapter as a private enterprise,” Mr. Dell said in a statement after Tuesday’s announcement.
“Our 110,000 team members worldwide are 100 percent focused on our customers and aggressively executing our long-term strategy for their benefit.”
Shares in Dell were roughly unchanged on Tuesday, closing at $13.86, according to Michael J. De La Merced of the New York Times.