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Dell could be bought out as soon as Monday

Dell Executive Room

Dell chairman and founder Michael Dell could regain control of the company by as soon as Monday, according to people familiar with the matter.

Under the terms of the deal, reports Reuters [1], Dell will once again become the majority shareholder of the world’s third-largest PC manufacturer while private equity company Silver Lake Partners and Microsoft will become minority investors.

We’ve known that Dell has been in talks to go private [2] for some time now, it’s unclear however just how much it will pay out its shareholders under the terms of the deal. Given that Dell is currently valued at around US$23-billion however, it’s likely to be the largest leveraged buyout since the financial crisis started in 2008.

According to Reuters, the consortium has secured US$15-billion in debt financing to take the company private. The money comes from four investment banks — Barclays, Bank of America Merrill Lynch, Credit Suisse and RBC Capital, people familiar with the matter said.

Michael Dell’s existing 16% portion will reportedly be added to the war chest in his campaign to regain majority control of the company.

Reuters reckons that going private will allow Dell to transition away from the shrinking PC market into a one-stop shop for corporate tech needs away from the prying eyes of the stock market. That makes sense, and it also means the company gets to dictate its future survival on its own terms rather than on the whims of the market.