US-based computer major Dell on Tuesday said it has received regulatory clearances for the buyout deal offered by founder Michael Dell and the transaction will close by the end of October.
New York: US-based computer major Dell on Tuesday said it has received regulatory clearances for the buyout deal offered by founder Michael Dell and the transaction will close by the end of October.
Shareholders of the company last month approved about USD 25 billion offer made by Dell and Silver Lake Partners to take the US-based computer maker private.
Michael Dell's efforts to take the firm private had hit a stumbling block as he faced stiff resistance from billionaire investor Carl Ichan and money manager Southeastern Asset Management.
Dell has received all necessary pre-merger regulatory clearances for the consummation of the merger transaction in which Michael Dell will acquire Dell in partnership with global technology investment firm Silver Lake Partners, the company said in a statement.
"The transaction is expected to close before the end of the third quarter of Dell's FY2014," the statement said. Dell follows February-January financial year.
Following the closure of the deal, shares of Dell will be removed from the stock market.
Dell shareholders will receive USD 13.75 in cash for each share they hold, besides a special cash dividend of USD 0.13 per share to stockholders of record as of a date prior to the effective time of merger, for total consideration of USD 13.88 per share in cash.
The deal comes at a time when personal computer sales are declining mainly due to rise of tablets and smartphones.
Earlier, Micheal Dell in his address to company's customers had said: "We are going back to our roots, to the entrepreneurial spirit that made Dell one of the fastest growing, most successful companies in history".
Dell entered India in 1996 and has customers in large enterprises, small and medium businesses and retail consumers.
It has offices in eight cities, including Bangalore, Hyderabad, Delhi and Chennai. It also has a manufacturing facility in Tamil Nadu, set up in 2006.
Dell India accounts for the company's largest employee base outside the US. It employs 110,000 people globally.
According to research firm IDC's April-June 2013 data, Dell holds 11 percent PC market share in India the second largest after Hewlett-Packard, which controls 34.1 percent.