Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Enterprise I.T.
24/7/365 Network Uptime
Average Rating:
Rate this article:  
A $24.4 Billion Bet on Dell
A $24.4 Billion Bet on Dell's Future

By Jennifer LeClaire
February 5, 2013 11:39AM

    Bookmark and Share
"I am committed to this journey and I have put a substantial amount of my own capital at risk together with Silver Lake, a world-class investor with an outstanding reputation," said CEO and company founder Michael Dell. "We are committed to delivering an unmatched customer experience and excited to pursue the path ahead."
 



Michael Dell is taking the company that bears his name private. As rumored, Dell has signed a leveraged buyout agreement worth $24.4 billion.

Dell, the company's founder, chairman and CEO, in partnership with global technology investment firm Silver Lake Partners and backed in part with Microsoft's money, will acquire Dell. Dell stockholders will receive $13.65 in cash for each share of Dell common stock they hold.

The price represents a 25 percent premium over Dell's closing share price of $10.88 on Jan. 11, 2013. The Dell board unanimously approved a merger agreement, which will ultimately see Dell and Silver Lake take the company private.

It's not a done deal yet. The merger agreement provides for a so-called "go-shop" period, during which the Special Committee -- with the assistance of Evercore Partners -- will actively solicit, receive, evaluate and potentially enter into negotiations with parties that offer alternative proposals. The initial go-shop period is 45 days. The agreement also must be approved by a vote of unaffiliated shareholders.

Sheltered from Wall Street

Roger Kay, senior analyst at Endpoint Technologies Associates, told us he was not surprised by the deal, given the rumors that have been circulating on the street for weeks. And he believes it is the right move for Dell.

"Being private will shelter the company from Wall Street while it makes its potentially ungraceful transformation from supplier of commodity PCs over to full-line enterprise solutions provider," Kay said.

Michael Dell, who owns approximately 14 percent of the company's common shares, will continue to lead the company as chairman and CEO. He will maintain a significant equity investment in Dell by contributing his shares of Dell to the new company. He will also make a substantial additional cash investment.

"I believe this transaction will open an exciting new chapter for Dell, our customers and team members. 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," Dell said.

'Committed to this Journey'

Dell pointed to "solid progress" executing that strategy over the past four years, then admitted that it would take still more time, investment and patience. He believes the company's efforts will be better supported by partnering with Silver Lake.

"I am committed to this journey and I have put a substantial amount of my own capital at risk together with Silver Lake, a world-class investor with an outstanding reputation," Dell said. "We are committed to delivering an unmatched customer experience and excited to pursue the path ahead."

Microsoft, which sells software to Dell and is part of the investment consortium, will also invest $2 billion.

"Michael Dell is a true visionary and one of the pre-eminent leaders of the global technology industry," said Egon Durban, a Silver Lake managing partner. "Silver Lake is looking forward to partnering with him, the talented management team at Dell and the investor group to innovate, invest in long-term growth initiatives and accelerate the company's transformation strategy to become an integrated and diversified global IT solutions provider."
 

Tell Us What You Think
Comment:

Name:

Michael H:

Posted: 2013-02-06 @ 2:36am PT
What happens after the merger of these two companies if I have to buy some shares right now?? Can u explain to me?



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Enterprise I.T.
1.   Teaming Up: CIOs, IT Asset Managers
2.   Juniper DDoS for High-IQ Networks
3.   IBM Rolls Out Hybrid Cloud Services
4.   Windows 7 Ends Mainstream Support
5.   Another IE-Focused Patch Tuesday


advertisement
Backlash Stirs Against H-1B Visas
Debate over foreign workers continues.
Average Rating:
IBM Rolls Out Hybrid Cloud Services
Based on SoftLayer net infrastructure.
Average Rating:
Windows 7 Ends Mainstream Support
But extended support still available.
Average Rating:


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
 
New Web Tracking Technologies Defeat Privacy Protections
Recently developed Web tracking tools are able to circumvent even the best privacy defenses, according to a new study by researchers at Princeton and the University of Leuven in Belgium.
 
34 European Banks Hit by Android-Skirting Malware
Criminals have been finding gaping holes in Android-based two-factor authentication systems that banks around the world are using. The result: 34 banks in four European countries have been hit.
 

Enterprise Hardware Spotlight
Microsoft Makes Design Central to Its Future
Over the last four years, Microsoft has doubled the number of designers it employs, putting a priority on fashioning devices that work around people's lives -- and that are attractive and cool.
 
Contrary to Report, Lenovo's Staying in Small Windows Tablets
Device maker Lenovo has clarified a report that indicated it is getting out of the small Windows tablet business -- as in the ThinkPad 8 and the 8-inch Miix 2. But the firm said it is not exiting that market.
 
Seagate Unveils Networked Drives for Small Businesses
Seagate is out with five new networked attached storage products aimed at small businesses. The drives are for companies with up to 50 workers, and range in capacity from two to 20 terabytes.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.