Michael Dell has teamed up with investment firm Silver Lake to buy computer maker Dell, the company he founded as a 19-year-old in 1984, in a deal valued at about $24.4 billion.
After the transaction closes, Michael Dell will continue as CEO and chairman of the company, according to a statement.
“I believe this transaction will open an exciting new chapter for Dell, our customers and team members,” Michael Dell said in the statement. “We can deliver immediate value to stockholders, while we continue the execution of our long-term strategy and focus on delivering best-in-class solutions to our customers as a private enterprise.”
According to the statement, the deal is being financed through a combination of cash and equity contributed by Dell, cash from investors affiliated with Silver Lake, cash invested by MSD Capital, L.P., a $2 billion loan from Microsoft, rollover of existing debt and debt financing that’s been committed by BofA Merrill Lynch, Barclays, Credit Suisse and RBC Capital Markets.
Microsoft issued a statement saying that it is “committed to the long term success of the entire PC ecosystem and invests heavily in a variety of ways to build that ecosystem for the future. … we will continue to look for opportunities to support partners who are committed to innovating and driving business for their devices and services built on the Microsoft platform.”
