Dell Buyout Deal Announced For 24.4 Billion

dellComputer maker Dell announced today that it is going private and handed over to a group led by Dell CEO Michael Dell in an effort to revamp the company.

According to the terms of the deal, Dell stockholders will be paid $13.65 per share in cash for the transaction which is valued at $ 24.4 billion.

The complicated deal still needs more time before it closes since taxation and litigation issues have to be sorted out.

But the deal is expected to close before the end of  Dell’s second fiscal quarter 2014.

Once approved, the deal will be the largest buyout transaction since 2006.

Michael Dell owns approximately 14 percent stake in the computer company.

Microsoft Corp. is investing $2 billion in the deal which also receives funding from Silver Lake Partners and four banks, including Bank of America, Barclays, Credit Suisse, and RBC Capital Markets.

Once a stock with a share price of $26.00 per share, Dell is trading today for 13.37.


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