Dell becomes public company five years after buyout
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Dell, the onetime leader in personal computers and tech industry stalwart, said Monday it will become publicly traded five years after a contentious private equity buyout.
The company announced a stock swap deal with its software subsidiary VMware that will result in a reorganized tech giant that returns to the stock market, with founder Michael Dell retaining control as chairman and chief executive.
The move comes after a 2013 private equity buyout led by Michael Dell aiming to revive the company that fell behind when consumers turned to mobile devices instead of PCs.
“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,” Michael Dell said in a statement.
“Unprecedented data growth is fueling the digital era of IT, and we are uniquely positioned with our portfolio of technologies and services.”
The new Dell is far from the maker of personal computers that helped ignite the personal computer market in the 1990s.
It acquired the data storage group EMC in 2016 for a whopping US$67 billion (RM271 billion) and is a major player in software, security and cloud computing in addition to its PC business.
Michael Dell, who currently owns 72% of Dell Technologies common shares, struck a deal with the private equity firm Silver Lake to take the company private in 2013 in an effort to reorganize without pressure from public shareholders.
The move came amid fierce opposition from some shareholders led by billionaire investor Carl Icahn, who called the plan a “giveaway.”
Dell will trade on the New York Stock Exchange after completion of the deal, expected later this year, the company said.
Questions & Answers
Q.What kind of deal is Dell making to become publicly traded again?
What kind of deal is Dell making to become publicly traded again?
Dell is entering a stock swap deal with its software subsidiary, VMware. This will result in a restructured tech company that can return to the stock market, with founder Michael Dell still in charge.
Q.What was the main reason for Dell going private in 2013?
What was the main reason for Dell going private in 2013?
Michael Dell led the private equity buyout in 2013 to reorganise the company away from public shareholder pressure. Dell had fallen behind as consumers shifted from personal computers to mobile devices.
Q.How has Dell's business changed since its early days as a PC maker?
How has Dell's business changed since its early days as a PC maker?
The new Dell is a significant player in software, security, and cloud computing, alongside its PC business. It acquired data storage group EMC in 2016 for US$67 billion, broadening its technology portfolio.
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