Dell Inc. (NASDAQ:DELL) Consults With Boston Consulting Group To Split In 2

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The renowned US based computer maker Dell Inc. (NASDAQ:DELL) is just near to its 24.4 billion US dollars buyout. However, company’s directors prefer to split the company in two prior to buyout which was announced today.

The personal computer market is on a steady decline since corporate and individual customers are shifting towards cloud computing and mobile machines. Dell once led the market but now behind Hewlett Packard and Lenovo Group Ltd.

According to the sources the board of company is consulting with Boston Consulting Group as the company wants to examine breakup as an alternative over the buyout. The Boston Consulting Group was recently approached by the Dell senior executives to review the options. Its been speculated that Dell would go to split its PC business from data center hardware and software division along with corporate computer products business.

In order to boost shareholder value board members along with JPMorgan Chase & Company are exploring a dividend capitalization option. in such case the PC maker would take on debt to pay a special dividend. Michael Dell, the founder and chief executive officer of Dell Inc, decided to take the company private in August 2012 in a board meeting. The board decided a buyout of the entire company that proved as best deal for investors.

Dell gets half of its revenue from PC sales along with software sale. Nearly 70 % of revenue comes from monitors and printers sale. The third largest PC maker is going to experience the biggest computer takeover in more than a decade. Company is going private in an LBO led by Silver Lake Management along with founder Michael Dell.

Following the split Dell has directed spending toward more profitable business including software, data networking and services units.

DELL shares fell -0.15% to $13.40 in premarket on Wednesday.

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