- $13.65 per share take private valued at $24.4 Billion
- Deal valuation is approximately 0.4x Revenue (LTM as of Q3 2012)
- Top 10 largest leveraged buyout (LBO) of all time
February 5, 2013 10:30 am EST - Dell, Inc. (NASDAQ:DELL) received a take private bid this morning for $13.65 per share in a $24.4 Billion leveraged buyout (LBO) deal led by the company's founder & CEO Michael Dell. This LBO would be the biggest since Hilton was taken private in 2007 for approximately $26 Billion by the Blackstone Group, before the financial crisis. As a private company, Dell, Inc. will attempt to turn itself around and regain some of the PC market share it lost in recent years to increased competition and the onset of smartphones and tablet computers.
The take private bid proposed will be financed by cash and equity from Michael Dell (who also contributed his 14% stake), Silver Lake Partners, and Michael Dell's MSD Capital. The deal also included a $2 Billion loan from one of Dell's most important business partners, Microsoft Corp. Debt financing for the transaction was provided by Bank of America, Barclays, Credit Suisse, and RBC Capital Markets. SilverLake contributed $1.395 Billion in equity.
PrivCo breakdown the LBO transaction:
Dell, Inc Take Private Deal Analysis:
- Deal Valuation (TEV): $24.4 Billion ($13.65 Per Share)
- Equity: $9.4 Billion
- Debt: $15 Billion
- Debt-Equity Ratio: 1.6
- Revenues: $58.7 Billion (2012 LTM as of Q3 2012)
- EBITDA: $4.4 Billion (2012 LTM as of Q3 2012)
- TEV/LTM Revenue: 0.4x
- TEV/LTM EBITDA: 5.5x
- Buyers: Michael Dell, Silver Lake Partners
- Financial Advisors: Bank of America, Barclays, Credit Suisse, RBC Capital Markets, Goldman Sachs, Evercore Partners
- Legal Advisors: Simpson Thacher & Bartlett LLP; Wachtell, Lipton, Rosen & Katz; Hogan Lovells
- Go-Shop Period: 45 days
- Termination Fee: $180 million ($450 million after 45 days)
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