Dell Nears $22B Buyout Deal

Dell is reportedly closer to sealing the deal of selling the company for more than US$23 billion ($22.1 billion). Silver Lake, an investment firm, leads the group that is reportedly buying out Dell.

If the agreement pushes through, the deal becomes the biggest buyout in the US since the financial crisis. It is also Michael Dell’s most ambitious attempt to give a new lease at life of his company.

The final details are still being negotiated but industry observers believe an announcement would be made on Tuesday.

Silver Lake is reportedly paying somewhere between US$13.50 and $13.75 per share. Michael Dell is said to be contributing his 16-percent stake to the agreement. His stake amounts to some US$3.8 billion. Reports also indicate that Dell would contribute hundreds of millions of dollars as fresh capital for the company.

Silver Lake is one of the largest investors on technology companies. It is expected to contribute some US$1 billion to the deal. Microsoft is adding to it with US$2 billion worth of preferred shares or debt.