Dell (NASDAQ:DELL) has gone private in a $24.4 billion deal orchestrated by its founder and the private-equity firm Silver Lake. The computer company, which has struggled to fight against the changing technological trends dominating the industry, announced Tuesday that the buyers’ consortium agreed to pay $13.65 a share in cash for the business. The offered price represents a 25 percent premium to the stock’s closing price of $10.88 per share share on January 11, the day before the sale negotiations were made public.
Founder and Chief Executive Officer Michael Dell will contribute his 14 percent stake in the company toward the leveraged buyout, and add additional cash through his private investment firm MSD Capital. Further funding will come from Silver Lake’s investment of $1 billion and a loan of $2 billion from Microsoft (NASDAQ:MSFT), which agreed to the deal in order to shore up one of its most important business partners.
The company’s board of directors voted on the deal Monday night. However, the vote excluded Michael Dell. “Mr. Dell recused himself from all Board discussions and from the Board vote regarding the transaction,” stated the company in a press release announcing the deal.