Five years ago, the CEO of Dell Technologies (NYSE: DVMT), Michael Dell, in consultation with investment firm Silver Lake, decided to take the company private. As a private company, Dell was able to reshape and enhance a new generation of cell phones and make significant headway in the realm of cloud computing.
Now, Dell wants to go public again to help finance further investments in its businesses.
Dell plans to re-enter public market via VMWare, a computer software company that is subsidiary to Dell Technologies. Dell and Silver Lake have made an agreement deal of $21.7 billion to exchange trading stocks in a cash and share-swap deal in a new class of common shares. Along with the deal, VMWare will offer a $11 billion cash dividend and $9 billion to Dell. Through this process, Silver Lake will stay committed to their investment. Dell will become public in the New York Stock Exchange (NYSE) as a Class C common stock. Under the agreement, shareholders will be able to take $109 in cash per Class Vshare or 1.3665 shares for Dell's common stock.
Michael Dell owns 72% of his company, with Silver Lake owning 24% of Dell Technologies. Dell has been successful since it first went public in 1988, raising $30 million and increasing their market value from $1,000 to $85 million. Dell has doubled closing over at 8% with $84.58 in early July. Along with the increase, VMWare had raised 10% at $162.19.