Feeds

Dell goes private: Stock ceases trading, now Big Mike's baby once again

Deal cost Texan tech titan and pals $24.9bn

Bridging the IT gap between rising business demands and ageing tools

It's official: Dell is now a private company. Founder Michael Dell and Silver Lake Partners have completed their acquisition of the firm in a deal valued at around $24.9bn.

"Today, Dell enters an exciting new chapter as a private enterprise," Dell (the man) said in a canned statement. "Our 110,000 team members worldwide are 100 percent focused on our customers and aggressively executing our long-term strategy for their benefit."

Note that the aforementioned team is a bit thinner than it was before, following a "limited workforce reduction" designed to make Dell (the company) more efficient now that its shares are off the NASDAQ exchange.

Mickey D's battle to regain control of the company he created was not an easy one. Along the way, he faced down a challenge from "activist investor" Carl Icahn, who suggested an alternative debt restructuring plan that was ultimately rejected by Dell's board of directors.

Under the terms of the final deal, Dell stockholders will receive $13.75 in cash plus a special cash dividend of $0.13 for each share, for a total payout of $13.88 per share.

Having resumed control of the company, Dell says he plans to expand its reach in the enterprise, target developing markets, increase sales through the channel, and "accelerate an enhanced customer experience" – whatever that means.

Dell began life in Michael Dell's off-campus University of Texas dormitory room in 1984 and floated its initial public offering four years later, doubling its worth to become an $80m company practically overnight. After 25 years as a public company, on last count it had a market capitalization of $24.37bn.

Trading in Dell's common stock ceased as of the close of the market on Thursday, with a final price of $13.86 per share. ®

Build a business case: developing custom apps

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.