NEW YORK (CNNMoney) –
Dell announced plans Tuesday to go private in a deal that is worth $24.4 billion.
In a partnership involving private equity firm Silver Lake Partners, Microsoft and company founder Michael Dell, the group hopes to buy the computer maker for $13.65 a share. That’s slightly higher than where the stock closed Monday but is 25% higher than where Dell was trading before rumors of the buyout began to surface in mid-January.
If successful, the Dell deal would be one of the largest leveraged buyouts in history. Shareholders have to approve the deal before it becomes official.
The once mighty Dell has struggled to compete in an ailing and increasingly competitive PC market. Dell lost a third of its market value in 2012 and failed to keep up with rivals like Apple and Samsung, both of which have done a much better job adapting to the “post-PC” landscape with tablets and smartphones.
Dell has been trying to reduce its reliance on the PC market and shift to hot businesses like cloud computing, storage and corporate software. About half of Dell’s sales come directly from PCs, and another 20% comes from PC peripherals like monitors, keyboards, printers, computer software and services.