Shareholders of Dell stock will receive $13.65 per share, when the transaction concludes. That’s a premium of Dell’s share price of $10.88, which was its closing price before rumours of the sale started to surface.
The board of Dell, which includes Michael Dell himself, unanimously approved the merger agreement with Michael Dell and Silver Lake Partners taking the company private.
Dell Inc has appointed a special committee to evaluate alternative proposals in a so-called go-shop period of 45 days.
Michael Dell said he thought the move was an “exciting new chapter for Dell” and its customers. He said he has put a “substantial amount” of his own capital at risk together with Silver Lake.
After the transaction is completed, Michael Dell will continue as chairman and chief executive officer. Parties affiliated with Silver Lake include Microsoft, Merrill Lynch, Barclays, Credit Suisse and others.