Dell buyout near to close

Hardware giant's push to go private could be wrapped up this weekend, claim sources.

Dell logo

Hardware giant Dell is nearing an agreement to sell itself to a buyout consortium led by its founder and CEO Michael Dell and private equity firm Silver Lake Partners, it has been claimed.

Sources close to the situation report the deal could be announced as soon as Monday.

Michael Dell is expected to take majority ownership of the world's third-largest personal computer maker, which currently has a market value of $23 billion, while Silver Lake and Microsoft would become minority investors, another source claimed.

The final price the group is expected to pay Dell shareholders could not be immediately learned. The deal would mark the largest leveraged buyout since the global financial crisis.

The transaction is set to be finalised over the weekend but the buyout consortium is working on last-minute details and the timetable could still slip, the sourced added.

The investment group, which held negotiations with Dell's camp in New York on Thursday, has secured up to $15 billion of debt financing to take Dell private from four investment banks - Barclays, Bank of America Merrill Lynch, Credit Suisse and RBC Capital, it is understood.

Barclays is also advising Silver Lake on the transaction, along with Perella Weinberg Partners, said two of the people. JPMorgan Chase & Co is advising Dell.

Representatives for Dell, Microsoft and Barclays declined to comment. Silver Lake and Perella Weinberg could not be immediately reached for comment.

As part of the transaction, Michael Dell will contribute his existing stake of almost 16 per cent in the company toward gaining majority ownership, sources close to the matter have said.

Going private would allow Dell, which has been trying to become a one-stop shop for corporate technology needs as the PC market shrinks, to conduct that difficult transition away from public scrutiny.

Dell has formed a special committee of its independent directors and hired Evercore Partners Inc to assess whether the company is getting the best deal for shareholders and not one that is just in the best interest of Michael Dell, several people familiar with the matter have told Reuters previously.

Featured Resources

Shining light on new 'cool' cloud technologies and their drawbacks

IONOS Cloud Up! Summit, Cloud Technology Session with Russell Barley

Watch now

Build mobile and web apps faster

Three proven tips to accelerate modern app development

Free download

Reduce the carbon footprint of IT operations up to 88%

A carbon reduction opportunity

Free Download

Comparing serverless and server-based technologies

Determining the total cost of ownership

Free download

Recommended

Delivering on demand: Momentum builds toward flexible IT
Whitepaper

Delivering on demand: Momentum builds toward flexible IT

2 Dec 2021
Cyber Monday: Up to 60% off Dell laptops and desktops for SMBs
Hardware

Cyber Monday: Up to 60% off Dell laptops and desktops for SMBs

29 Nov 2021
VMware completes $64 billion spin-off from Dell
mergers and acquisitions

VMware completes $64 billion spin-off from Dell

2 Nov 2021
Dell unveils upgraded XPS Desktop with 12th gen Intel processors
Hardware

Dell unveils upgraded XPS Desktop with 12th gen Intel processors

28 Oct 2021

Most Popular

What should you really be asking about your remote access software?
Sponsored

What should you really be asking about your remote access software?

17 Nov 2021
What are the pros and cons of AI?
machine learning

What are the pros and cons of AI?

30 Nov 2021
How to move Microsoft's Windows 11 from a hard drive to an SSD
Microsoft Windows

How to move Microsoft's Windows 11 from a hard drive to an SSD

24 Nov 2021