- General
- July 3, 2018
- 4 minutes read
Dell once again is about to become a publicly traded company in a huge stock buyout
image credit : Flickr/ OraclePR Major technology company Dell Technologies which went private after a huge $24 Billion+ buyout sometime…
image credit : Flickr/ OraclePR
Major technology company Dell Technologies which went private after a huge $24 Billion+ buyout sometime 2013 is now preparing to go public again in a bid to simplify the company’s ownership structure even as it goes public in a kind of complex manner that will see the company’s shares now get publicly traded with founder and CEO Michael Dell and technology private equity giant Silver Lake Partners holding major stakes in the company.
Dell’s return to the public market comes as a transaction where Dell Technologies has agreed to buy shares which track the company’s involvement in cloud computing software company VMware at a premium with Dell Technologies stock which will start trading on the public market after the transaction is completed.
This deal will now see the company which notably made a huge $67 Billion acquisition of data storage company EMC in a bid which has seen the company’s enterprise operations growing and increasing the company’s revenues amidst declining consumer PC sales.
The acquisition which represents the largest tech buyout as of now merged with the company in a to form Dell EMC which made the company come up with quite a lot of debt which was used to finance tthe huge acquisition and with the company scaling its service and making progressive payments towards this debt, It has been paying down and restructuring this debt since then amidst huge growth of its enterprise business.
The EMC acquisition came with a huge stake in VMware which EMC acquired way back in 2003 for $625 million and coupled with several spin-offs, VMware now stands as a huge public company with over $60 Billion in market value with EMC’s majority stake in the company being transferred to deal in the acquisition deal.
This stake is now what’s being purchased for Dell Technologies stock which will now see Dell’s stock become publicly traded again after over 4 years of being private.
The company which has transitioned to several IT and enterprise services beyond the sale of its consumer PCs only reported a huge $82.4 Billion revenue over the past 12 month amidst a net loss of $2.3 Billion related to various operations and the paying down of $13 Billion of the company’s debt.
VMware now stands to operate as an independent company and has just declared a special dividend which is earmarked to add a huge $9 Billion to Dell’s balance sheet along with the company which made a huge $7.92 Billion in last year revenue set to continue its operations now as an independent public company.
