Technology

Dell computers to be bought back by founder Michael Dell

Michael Dell already owns about 14% of the company that he founded

Michael Dell has said that he will buy back the world’s number three PC manufacturer that he founded and that carries his name for $24.4bn (£15.5bn).

Mr Dell, together with technology private equity investor Silver Lake, will offer $13.65 cash per share.

The firm said it offered a 25% premium over the Dell’s valuation in January when rumours of the deal first broke.

The buy-out of the Nasdaq-listed firm will be financed by loans from four banks, and a $2bn loan from Microsoft.

Mr Dell, who is also chief executive and chairman of the firm, already owns about 14% of the company. He and fellow senior executives will retain their existing stakes.

He said that the firm’s long-term strategy would “still take more time, investment and patience, and I believe our efforts will be better supported by partnering with Silver Lake in our shared vision”.

Before completing the deal with Mr Dell and Silver Lake, Dell’s board will conduct what it called a “go shop” period of 45 days during which it would actively seek competing offers to buy the firm at a better price.

Courtesy: bbc.co.uk