Report: Private Equity Firms in Talks to Take Dell Private

Dell CEO and founder Michael Dell

The biggest story this Monday afternoon is Dell.

Bloomberg News is reporting that the world’s No. 3 PC maker is in talks with at least two private equity firms to go private. The story did not provide names of the firms in question. Several large banks have been contacted about financing the offer, Bloomberg says.

News of the deal caused Dell shares to surge nearly 13% Monday, or $1.41, to close at $12.29. The company has a $21.35 billion market cap.

One PE executives told peHUB that any buy of Dell would be “risky.” Another said he “wasn’t surprised” by the speculation.

The popularity of smartphones and tablets have hurt Dell and other PC makers, the Associated Press says. Michael Dell now owns more than 14 percent of the company, according to Thomson Reuters data, Reuters reports.

Large buyout shops have taken part in some major tech deals. In 2005, Silver Lake led a consortium of PE firms to buy SunGard for $11.3 billion. The deal included Bain Capital, the Blackstone Group, Goldman Sachs Capital partners, KKR, Providence Equity Partners and TPG.

Photo courtesy of REUTERS/Lucas Jackson

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2 Comments

  • My question is whether going private will allow Dell to make a positive change to its strategy. Seems to me the market’s health has worsened irreparably.

  • I think this is gonna be a great challenge for Dell, anyway!

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