Dell’s shareholders have voted to buy back VMware’s tracking stock in a complicated financial maneuvre that will see the enterprise tech giant return to the stock market.
Dell went private in 2013, but in February this year the US firm revealed it was considering going public once again. Last night, holders of 61 per cent of its common stock backed the move.
“We appreciate our stockholders’ support,” said CEO Michael Dell (pictured) in a statement. “With this vote, we are simplifying Dell Technologies’ capital structure and aligning the interests of our investors.”
The buy-back is worth a total of $23.9bn, with each share valued at $120 (£95). The company is expected to list on 28 December.
“This strengthens our strategic position, as we continue to deliver innovation, long-term vision and integrated solutions from the edge to the core to the cloud,” added Dell. “We’ve created Dell Technologiesto be our customers’ most trusted partner in their digital transformation.”
In September, it was revealed that the company had extended its lead in the enterprise storage systems maret. IDC data revealed the company generated more than $2.5bn of revenue in the second of quarter of 2018, taking an 18.3 per cent share of the market.
HPE finished a close second, with a 17.3 per cent share of the market – more than 10 per cent higher than its closest followers NetApp (6.3 per cent) and IBM (4.6 per cent). But its revenue growth was significantly slower than Dell’s at 1.9 per cent.