After five years hidden from the scrutiny of Wall Street oversight, Dell is ready to re-emerge from its confines as a privately held company. The company went private in order to undertake a massive turnaround plan amid a wildly changing computing market, but now is ready to return as a public entity and as an even stronger force in the Tech sector.
In a deal worth $21.7 billion, Michael Dell and the investment firm Silver Lake have announced an agreement to buy its tracking stock (DVMT) in exchange for a new class of public stock that will be listed on the New York Stock Exchange (NYSE).
During Dell’s reorganization as a private entity it has become more financially secure, posting 19 percent revenue growth during its most recently completed quarter. The company also paid off $13 billion in debt stemming from it EMC tie-up. Dell is still losing money (to the tune of around half a billion dollars last quarter), but those losses are narrowing. Given its improved financial state, Dell sees this as the perfect opportunity to go public (again).
"I am proud to lead this great company into its next chapter as we continue to evolve and grow to the benefit of our customers, partners, investors and team members," said Michael Dell, Chairman and CEO of Dell Technologies. "Unprecedented data growth is fueling the digital era of IT, and we are uniquely positioned with our portfolio of technologies and services to enable the digital, IT, security and workforce transformations of our customers."
Michael Dell currently owns 72 percent of common shares in Dell, while Silver Lake owns 24 percent. Michael Dell will retain his position as Chairman and CEO of the company.
DVMT shareholders will get $109 cash or 1.3665 shares of Dell Class C common stock on the NYSE.