AUSTIN (KXAN) – It’s hard to think of a company that has a bigger impact on central Texas than Dell. The Dell name is on hospitals, stadiums — and a lot of paychecks.

Around 14,000 people work for Dell in Central Texas. It’s the area’s largest employer. Now, the company is gearing up for a major change.

Founder and CEO Michael Dell, plus other investors, are set to buy Dell for billions. That would privatize the now publicly-traded company.

“Dell’s transformation is well underway, but we recognize it will still take more time, investment and patience,” Dell said in an email to employees after the deal was announced. “I believe that we are better served with partners who will provide long-term support to help Dell innovate and accelerate the company’s transformation strategy. We’ll have the flexibility to continue organic and inorganic investment, and grow our business for the long term.

So, what’s the big picture? Financial experts say it could be a good sign for the economy.
 
In the early to middle 1990s, Dell was becoming the name of the game.

“They were the leader in the tech business,” said financial analyst and wealth manager John Harrell, “There were a lot of companies that were locating to Central Texas to be suppliers to Dell.”

As more businesses came, that helped grow the economy and provide more jobs. Years later, Dell continues to reign as the top employer in Austin. After 25 years as a publicly traded company, Michael Dell announced they’re going private.

“It’s a good time to do this,” said Harrell, “They’ve got a lot of cash, they’ve got financing in place, and they can take it private for really a fraction of what their overall sales are.”

The move also allows Dell to operate free from the scrutiny a public company undergoes.

“A private company can make decisions with the chief executive, the board, and senior executive leaders without having to be subject to shareholder approval in some things,” said Harrell.

The Dell buyout is the biggest since the financial crisis. That could mean good news for the bigger picture.

“Whenever you see things like buyouts, companies buying back their own stock, or raising dividends–those are all really good signs for the economy,” said Harrell.

The buyout is big news for people who own Dell stock. Michael Dell and other investors will spend more than $24 billion to take the company private. They’ll buy out shareholders for $13.65 per share. That’s well below the value in Dell’s heyday, but up about 37 percent  from the average in recent months.

The buyout isn’t done deal yet. The company will solicit competing offers for the next 45 days.