Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Enterprise I.T.
Tame your scariest paperwork. Find Out How
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?





 Enterprise I.T.
1.   BlackBerry BES 10 Now Hosted
2.   Teaming Up: CIOs, IT Asset Managers
3.   Juniper DDoS for High-IQ Networks
4.   IBM Rolls Out Hybrid Cloud Services
5.   Windows 7 Ends Mainstream Support


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
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 
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.
 
Dropbox for Business Beefs Up Security
Dropbox is upping its game for business users. The cloud-based storage and sharing company has rolled out new security, search and other features to boost its appeal for businesses.
 

Enterprise Hardware Spotlight
Watson Gets His First Customer Service Gig
Since appearing on Jeopardy, IBM's Watson supercomputer has been making a living using his super-intelligent knowledge base for business verticals. Now, Watson's been hired for his first customer service job.
 
Tablet Giants Apple and Samsung Feel the Heat
When a company saturates its home market with a once-hot product, expect it to pump up efforts elsewhere. Apple, for its part, is now pushing iPads to big corporations and the enterprise market.
 
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.
 

Mobile Technology Spotlight
T-Mobile Calls 'BS' on AT&T's New Promotion
While Verizon Wireless is moving to throttle bandwidth hogs, a scrappy T-Mobile is taking on the giants with a limited-time promotion it hopes will drive up the churn rates of its wireless rivals.
 
Microsoft Update to Windows Phone 8.1 Already Coming
An update to Windows Phone 8.1 is on the way just weeks after the release of the product itself. Microsoft has begun detailing some of the update features to phone manufacturers.
 
Stanford Researchers Report Battery Breakthrough
Stanford researchers have found a way to use lithium in a battery's anode, a breakthrough that could triple capacity and has been described as the "holy grail of battery science."
 

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 | CRM Systems | 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.