We mentioned a few days ago that Dell Inc. was looking for a way to take the company private. One of the avenues that sources said was being pursued in taking Dell Inc. private again was a significant investment of between $1 billion and $3 billion from Microsoft. Over the last few days, new details have surfaced including a source who claims that Dell Inc. founder Michael Dell would combine his current ownership stake and as much as $1 billion of his own money to become the majority owner.
Reuters reports today that Dell is near making a deal that would see the company sold to a buyout consortium led by Michael Dell and a private equity firm called Silver Lake Partners. The deal would take the company private where some analysts believe it would be easier for the company to operate and make acquisitions away from the public eye. According to sources cited by Reuters, a deal could be completed as early as Monday.
According to the sources, Michael Dell is expected to become the majority owner. Silver Lake and Microsoft would be minority investors according to another source. It remains unclear what the final buyout price paid to Dell shareholders will be. Reuters says that if the buyout is successful, it would be the largest leveraged buyout since the global financial crisis hit.
According to the sources, the buyout deal will be finalized over the weekend with the consortium working on last-minute details. However, the sources do note that the timeframe for closing the deal could change. Sources claim that the buyout consortium has secured up to $15 billion of debt financing. Michael Dell contributed is existing stake of almost 16% in his effort to become the majority owner of Dell Inc.