Michael Dell and private equity firm Silver Lake have raised their offer to buy the company and take it private to $13.75 per share, the company's special committee said in a statement on Friday.
The deal, according to a statement emailed to ZDNet, will also include a 13 cent per share special dividend to shareholders. The deal, now pegged at roughly $24.9 billion, is close to $500 million more — or 20 cents per share — than the first offer first floated in February.
Despite higher bids by rival, Michael Dell's raised offer dramatically increases the chance of the deal going through.
"The Committee is pleased to have negotiated this transaction, which provides as much as $470 million of increased value, including the next quarterly dividend that will now be paid regardless of when the transaction closes," said Alex Mandl, chairman of the Dell special committee, set up to determine the best deal for the company going private.
Dell and Silver Lake will receive modifications to the voting rights that were requested in late July. Current rules dictate that non-voting shareholders are considered "opposed" on the final vote.
As company founder Michael Dell is not allowed to vote, he requires 43 percent of shareholder support to approve the deal. This clears a significant hurdle for the founder, making the deal easier to complete but also fairer for all sides.
"We believe modifying the voting standard is in the best interests of Dell shareholders, both because it has enabled us to secure substantial additional value and because it provides a level playing field for the decision facing shareholders," Mandl noted.
It comes hours ahead of a scheduled shareholder vote, which has now been delayed until September 12 in efforts to help garner greater support from shareholders.
Meanwhile, Carl Icahn, Dell's second largest shareholder, filed a lawsuit on Thursday in efforts to block the date of the shareholder vote. Some saw the move by Icahn as retalitatory and as a "last ditch" attempt to foil a rival takeover.