Dell in $24 billion deal to go private

ROUND ROCK, Texas (AP/KXAN) â€” Slumping personal computer maker Dell is selling itself for $24.4 billion to its founder and a group of investors that includes Microsoft, the company said Tuesday.

It’s the largest deal of its kind since the Great Recession dried up financing for risky maneuvers like this.

â€œI believe this transaction will open an exciting new chapter for Dell, our customers and team members,” said Michael Dell, the founder and CEO of the company. “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.”

The complex agreement will end Dell Inc.’s nearly 25-year history as a publicly traded company. Shareholders are receiving $13.65 per share for their stock.

The deal reflects Dell’s desire to engineer a turnaround attempt away from the glare and financial pressures of Wall Street.

Michael Dell will remain the company’s CEO and largest shareholder. He already owned a nearly 16 percent stake in the company, which is based in Round Rock.

“The Dell Board of Directors acting on the recommendation of a special committee of independent directors unanimously approved a merger agreement under which Michael Dell and Silver Lake Partners will acquire Dell and take the company private subject to a number of conditions, including a vote of the unaffiliated stockholders,” the statement said. “Mr. Dell recused himself from all Board discussions and from the Board vote regarding the transaction.”

The $24.4 billion price tag represents a premium of 25 percent over Dellâ€™s closing share price of $10.88 on Jan. 11, the last trading day before going-private rumors were first published, Dell said

The buyers will acquire for cash all of the outstanding shares of Dell not held by Michael Dell and unnamed other members of management, the statement said.

Microsoft Corp. is taking part in the deal with a $2 billion loan.