Dell said in its most recent quarter it recorded revenue of $21.4 billion, up 19% year-over-year, and over the past 12 months the company generated $82.4 billion of revenue with a net loss of $2.3 billion.
Dell said it will propose to exchange each share of VMware tracking stock for 1.3665 shares of Dell Technologies Class C common stock, or at the holder's election, $109 in cash, subject to the total amount of cash consideration not above $9 billion.
But Mr. Dell pushed back on the notion the change in USA tax law had anything to do with the company's decision to be publicly traded again.
"We are excited that public investors will share in Dell Technologies' dynamic value creation with Silver Lake, which has no plans to seek liquidity and remains an enthusiastic long-term shareholder".
The share-swap decision came after a monthslong strategic review as Dell wrestled with a bulging debt load built through a $25 billion leveraged buyout in 2013 that took the company private and the EMC deal, which added tens of billions of dollars more to the pile. The Class C shares will list on the New York Stock Exchange.
Dell Technologies has offered to buy shares that track its interest in software firm VMware, a move that would mark a re-emergence into the public markets for Dell.
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At time of publication, Dell was trading up 7.7 percent at $91.10, and VMware was up 5.4 percent at $155. After VMware shareholders choose whether they want cash or Dell stock, Dell sharehlders will own between 20.8% and 31% of Dell.
A tracking stock is a type of common stock that "tracks" or depends on the financial performance of a specific business unit or operating division of a company rather than the operations of a company as a whole.
The transaction still needs shareholder approval.
"Unprecedented data growth is fueling the digital era of IT, and we are uniquely positioned with our portfolio of technologies and services to enable the digital, IT, security and workforce transformations of our customers".
Dell in its early years focused on commercial clients, but that changed in the late 1990s when it garnered a huge following among techies who desired more options in customizing PCs.
"Dell is a very different company than it was five years or so years ago". VMware will remain a stand-alone company, and Dell will continue to own 81 percent of VMware's common stock.