Dell Technologies Inc has won the shareholder’s vote to go public, just after five years of going private in one of the biggest buyouts ever. The decision to go public sees them relisting as a financially stronger and more diverse leader in computer equipment and software. The move is expected to simplify a complicated corporate structure thus allowing the company greater flexibility to raise capital, boost its value and pursue stock-based acquisitions.
Reports by Fortune states that under the terms of the deal, Dell will buy out shareholders of the stock that tracks Dell’s stake in software maker VMware Inc., known by its ticker DVMT, for $23.9 billion worth of cash and shares.
The tech giant will also let their key investor Silver Lake, make its stake more liquid. The path to the vote hasn’t been simple, as investors balked at Dell’s initial offer and forced it to sweeten the bid to get the transaction over the finish line. Dell increased its offer to about $120 a share in cash and stock, from $109.
“With this vote, we are simplifying Dell Technologies’ capital structure and aligning the interests of our investors,” Michael Dell, the chief executive officer
VMware, which makes virtualization software to maximize workloads on servers, will remain a publicly traded company independent from Dell, despite the computer maker’s 81 percent ownership stake.