Michael Dell, Silver Lake win $25 billion buyout
Dell's founder received the votes he needs to set the wheels in motion to take his company private.
Michael Dell, alongside his fellow investor Silver Lake Partners, has secured the required votes on Thursday to go private with the company he co-founded.
Dell's shareholders cast their ballots this morning on whether they should sell off their shares to Michael Dell and watch the computer maker go private, and as expected, they voted in favor of the deal. The shift away from being publicly traded has been a long time coming, with several roadblocks along the way, but it appears Dell will now secure the deal.
Under the terms of the deal, Michael Dell and Silver Lake will commence a $25 billion buyout of all the remaining shares the investors do not own. The sum is made up of a sale price of $13.75 per share, as well as a 13-cent special dividend. Dell initially offered $13.65 per share.
The path to victory was practically guaranteed today because Dell's chief competitor, Carl Icahn, had backed out of his bid to take the company in another direction. Earlier this week, Icahn announced that he has abandoned plans to offer an alternative option to shareholders, saying that it would be "impossible" for him to win.
In a statement on the vote, Michael Dell said that he was "pleased" with the shareholder vote, adding that the vote will now allow his company to move forward to "serve our customers."
Dell expects the transaction to close by the end of its fiscal third quarter. Regulatory approval must first be won.
Update at 7:30 a.m. PT to include new details.