FORMERLY PE OWNED
Dell Technologies
Includes Dell, Dell Computers
computers · Round Rock, TX
- PE Firm
- Silver Lake →
- Year Acquired
- 2013
Silver Lake took Dell private for $24.9 billion in 2013, shed 10,000 jobs in the first year, then sold it back to the public for billions.
What Happened
- Michael Dell and Silver Lake took Dell private for $24.9 billion in 2013, with quarterly profits down 72% as PC sales sank.
- Acquired EMC for $67 billion in 2016, the biggest tech deal in history at the time, then cut 2,000-3,000 overlapping jobs.
- Returned to public markets in 2018, turning Silver Lake's $1.4 billion stake into one of the most lucrative buyouts in Wall Street history.
The Damage Done
- An additional 2,000-3,000 jobs eliminated after the EMC merger in 2016.
- Customer support and enterprise service quality suffered as the cost-cut targets came due — the PE win came out of staff and service.
Sources
- Dell relisting on NYSE after going private — Fortune(2018-12-11)
- Dell Plans Big Job Cuts As EMC Deal Closes — Fortune(2016-09-08)
- Dell Completes Go-Private Transaction — Silver Lake(2013-10-29)
- Dell's profits nosedive 72% in the face of sinking PC business — TechRadar(2013-08-16)
- Dell Laid Off 10,000 Employees In A Year — Patch (Round Rock)(2015-12-17)
- The Gamblers Behind Tech's Biggest Deal Ever — Fortune(2016-12-27)