Dell Inc is nearing an agreement to sell itself to a buyout consortium led by its founder and chief executive Michael Dell and private equity firm Silver Lake Partners, possibly announcing a deal as soon as Monday, according to two people familiar with the matter.
Michael Dell is expected to take majority ownership of the world's third-largest personal computer maker, which currently has a market value of $23 billion, while Silver Lake and Microsoft Corp would become minority investors, a third person familiar with the matter said.
The final price the group is expected to pay Dell shareholders could not be immediately learned. The deal would mark the largest leveraged buyout since the global financial crisis.
The transaction is set to be finalised over the weekend but the buyout consortium is working on last-minute details and the timetable could still slip, the people cautioned, asking not to be named because the matter is not public.
The investment group, which held negotiations with Dell's camp in New York on Thursday, has secured up to $15 billion of debt financing to take Dell private from four investment banks — Barclays, Bank of America Merrill Lynch, Credit Suisse and RBC Capital, people familiar with the matter said.
Barclays is also advising Silver Lake on the transaction, along with Perella Weinberg Partners, said two of the people. JPMorgan Chase & Co is advising Dell.
Representatives for Dell, Microsoft and Barclays declined to comment.