Dell has agreed to go private in a deal led by its founder and investment firm Silver Lake for $13.65 per share, which works out to $24.4 billion in total, the largest leveraged buyout since the financial crisis.
Microsoft will have a $2 billion hand in the pot. And, of course, with 14% of Dell shares in hand, founder Michael Dell will keep his place at the top of the company, as chairman and CEO.
This size of the deal has sparked excitement around Wall Street. Private equity funds flush with cash and lacking appropriate investments for the last few years have been drooling over the deal, hoping that the trend continues.
Whether it’s a good move for Dell, however, remains to be seen. We’ve discussed both the pros and the cons of going private at length, but only time will tell if Michael Dell can revive his aging business.