Hardware giant Dell is nearing an agreement to sell itself to a buyout consortium led by its founder and CEO Michael Dell and private equity firm Silver Lake Partners, it has been claimed.
Sources close to the situation report the deal could be announced as soon as Monday.
Michael Dell is expected to take majority ownership of the world's third-largest personal computer maker, which currently has a market value of $23 billion, while Silver Lake and Microsoft would become minority investors, another source claimed.
The final price the group is expected to pay Dell shareholders could not be immediately learned. The deal would mark the largest leveraged buyout since the global financial crisis.
The transaction is set to be finalised over the weekend but the buyout consortium is working on last-minute details and the timetable could still slip, the sourced added.
The investment group, which held negotiations with Dell's camp in New York on Thursday, has secured up to $15 billion of debt financing to take Dell private from four investment banks - Barclays, Bank of America Merrill Lynch, Credit Suisse and RBC Capital, it is understood.
Barclays is also advising Silver Lake on the transaction, along with Perella Weinberg Partners, said two of the people. JPMorgan Chase & Co is advising Dell.
Representatives for Dell, Microsoft and Barclays declined to comment. Silver Lake and Perella Weinberg could not be immediately reached for comment.
As part of the transaction, Michael Dell will contribute his existing stake of almost 16 per cent in the company toward gaining majority ownership, sources close to the matter have said.
Going private would allow Dell, which has been trying to become a one-stop shop for corporate technology needs as the PC market shrinks, to conduct that difficult transition away from public scrutiny.
Dell has formed a special committee of its independent directors and hired Evercore Partners Inc to assess whether the company is getting the best deal for shareholders and not one that is just in the best interest of Michael Dell, several people familiar with the matter have told Reuters previously.
-
Google CEO Sundar Pichai says vibe coding has made software development ‘exciting again’News Google CEO Sundar Pichai claims software development has become “exciting again” since the rise of vibe coding, but some devs are still on the fence about using AI to code.
-
15-year-old revealed as key player in Scattered LAPSUS$ HuntersNews 'Rey' says he's trying to leave Scattered LAPSUS$ Hunters and is prepared to cooperate with law enforcement
-
Computacenter enters the fray against Broadcom in Tesco's VMware lawsuitNews The IT reseller has added its own claim against Broadcom in VMware case brought by Tesco
-
Who is John Roese?Dell's CTO and Chief AI Officer John Roese brings pragmatism to AI
-
Meta layoffs hit staff at WhatsApp, Instagram, and Reality Labs divisionsNews The 'year of efficiency' for Mark Zuckerberg continues as Meta layoffs affect staff in key business units
-
Business execs just said the quiet part out loud on RTO mandates — A quarter admit forcing staff back into the office was meant to make them quitNews Companies know staff don't want to go back to the office, and that may be part of their plan with RTO mandates
-
Amazon workers aren’t happy with the company’s controversial RTO scheme – and they’re making their voices heardNews An internal staff survey at Amazon shows many workers are unhappy about the prospect of a full return to the office
-
Predicts 2024: Sustainability reshapes IT sourcing and procurementwhitepaper Take the following actions to realize environmental sustainability
-
Advance sustainability and energy efficiency in the era of GenAIwhitepaper Take a future-ready approach with Dell Technologies and Intel
-
Tech execs pushed for a return to the office – now they’re backtracking amid a workforce revolt, with only 3% of firms asking staff to return full-timeNews Return to office mandates have failed miserably, and many businesses appear to be admitting defeat
