Newsletters
Business News for Technology Decision-Makers 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 Business Briefing Mobile Industry News Small Business Business Intelligence More Topics...
Enterprise Hardware
DDoS Protection Powered By Verisign
Average Rating:
Rate this article:  
A $24.4 Billion Bet on Dell's Future

A $24.4 Billion Bet on Dell's Future
By Jennifer LeClaire

Share
Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

"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 Hardware
1.   Acer Desktop Box Rides Chrome Wave
2.   New Lenovo PCs for Business Users
3.   Aruba Handles Black Hat with Aplomb
4.   Concerto 2200: Dedupe, Compression
5.   Cisco Axes 6,000 Employees


advertisement
Acer Desktop Box Rides Chrome Wave
Chromebox targets schools, small biz.
Average Rating:
Concerto 2200: Dedupe, Compression
Firms save money by saving space.
Average Rating:
Cisco Axes 6,000 Employees
Company is facing declining profits.
Average Rating:


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

Network Security Spotlight
UPS Stores in 24 States Hit by Data Breach
Big Brown has been breached. UPS said that about 105,000 customer transactions at 51 of its UPS Store locations in 24 states could have been compromised between January and August.
 
Cost of Target Data Breach: $148 Million Plus Loss of Trust
The now infamous Target data breach is still costing the company -- and its shareholders -- plenty. In fact, the retailing giant forecast the December 2013 incident cost shareholders $148 million.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 

Enterprise Hardware Spotlight
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 
Three New Lenovo PCs Aimed at Business Users
Businesses everywhere want computing solutions that do more for less money, and Lenovo has unveiled three new desktop PCs that offer solid computing at a budget-minded price.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 

Mobile Technology Spotlight
Google Glass Adds Voice Access to Phone Contacts
The latest update to Google Glass will let users access their top 20 phone contacts with voice commands alone. A user can then choose a phone call, Google hangouts, e-mail or text messaging.
 
Samsung, B&N Target Amazon with Nook Tablet
They've seen the enemy and it is Amazon. So Samsung and Barnes & Noble are teaming up to combat their common foe with a 7-inch tablet that blends Samsung’s tech, Nook’s content and e-reader platform.
 
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 

Navigation
NewsFactor Business
Home/Top News | Business Briefing | Mobile Industry News | Small Business | Business Intelligence | Innovation | E-Commerce | 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.