Posted on February 5, 2013 at 8:33 AM
Tuesday, Feb 5 at 5:33 PM
ROUND ROCK, Texas -- The deal is done. In an overnight agreement, Tech giant Dell has decided to go private.
Dell officials released a written statement Tuesday morning. It confirms that Dell, Inc. passed through its final hurdle to go from public to private overnight. The deal is worth about $24.4 billion.
Founder, Chairman and CEO Michael Dell is buying the company, but he's not doing it alone. Dell is partnering with an investment firm called Silver Lake and Microsoft.
Dell says its stockholders will receive money through the deal. They're getting $13.65 in cash for each share.
Rumblings of a move to go private started back in August when Dell first approached the company's Board of Directors.
Tuesday morning he released this statement: "I believe this transaction will open an exciting new chapter for Dell. I am committed to this journey and I have put a substantial amount of my own capital at risk together with Silver Lake."
Under the agreement, Dell will continue to lead the company as Chairman and CEO. The company also says its headquarters will remain in Round Rock.
"I have hundreds of former students who work at Dell, and my hope is Michael can turn this thing around for their sake, the sake of their families, and the sake of the people whose livelihood depends on Dell," said John Doggett a senior lecturer at the McCombs School of Business at the University of Texas and an expert in international business.
Doggett predicts Dell will lay off 2,000 to 3,000 employees when it goes private. He says most of the lay-offs will come from the company's acquisitions and investor relations departments.
Economist Angelos Angelou says Michael Dell could make the company more profitable if it goes private.
"It allows him a lot more flexibility without the public scrutiny," said Angelou.
There's mixed emotions among many employees. Some are unsure and worried about the changes it will bring to this campus. Others say they're excited.
There could still be a change in store. The merger agreement provides for what's called a "go-shop" period. That means that for the next 45 days the company can still negotiate with other companies making alternate offers.
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