Dell today announced that, based on a preliminary vote tally from the special meeting of stockholders, Dell stockholders have approved the proposal in which Michael Dell, Dell’s Founder, Chairman and CEO, will acquire Dell in partnership with global technology investment firm Silver Lake Partners.
– Michael Dell, CEO, Dell.
In connection with the transaction, Dell stockholders will receive $13.75 in cash for each share of Dell common stock they hold, plus payment of a special cash dividend of $0.13 per share to stockholders of record as of a date prior to the effective time of the merger, for total consideration of $13.88 per share in cash.
The agreement also guarantees the regular quarterly dividend of $0.08 per share for the fiscal third quarter would be paid to holders of record as of a date prior to closing. The total transaction is valued at approximately $24.9 billion.
The preliminary vote tally shows that the transaction was approved by the holders of a majority of Dell’s outstanding shares, as required by Delaware law.
In addition, the tally shows that the transaction was approved by the holders of a majority of Dell’s shares voting for or against the matter, excluding shares held by Mr. Dell, certain of his related family trusts, Dell’s Board of Directors and certain members of its management, as separately required under the merger agreement.
The transaction is expected to close before the end of the third quarter of Dell’s FY2014, subject to the satisfaction of customary closing conditions, including regulatory approval. Dell will continue to be headquartered in Round Rock, Texas.
In an open letter to customers, Michael Dell, chairman and CEO, Dell, said “We are going back to our roots, to the entrepreneurial spirit that made Dell one of the fastest growing, most successful companies in history. We’re unleashing the creativity and confidence that have always been the hallmarks of our culture. We plan to serve you, our customers, with a single-minded purpose and drive the innovations that will help power your dreams”
“We stand on the cusp of the next technological revolution. The forces of cloud, big data, mobile and security are changing people’s relationship with technology, just as the PC did almost 30 years ago. Now it’s time to do what Dell does best—make these innovations simpler, more affordable and more accessible, putting more power into the hands of more people than ever before,” he added.
Here is more information on Dell’s Merger Transaction.
Earlier this year, Dell launched Dell Cloud Partner Programme to deliver public cloud IaaS through partner ecosystem.