Dell goes private: Stock ceases trading, now Big Mike's baby once again
Deal cost Texan tech titan and pals $24.9bn
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. ®