Mr Dell, who set up the company as university student in Texas almost 30 years ago, is buying the rest of Dell with US private equity firm Silver Lake and Microsoft.
Dell investors will receive $13.65 a share for the world's third largest computer maker which has struggled as consumers increasingly favour tablets over traditional PCs.
The deal will see Mr Dell, who already owned almost 16pc of Dell, regain majority ownership of a company that, together with rival Hewlett-Packard, dominated the PC market for more than a decade.
Michael Dell started Dell while he was a pre-medical student at the University of Texas.
Microsoft, the biggest maker of software for PCs, will contribute $2bn to the purchase.
The acquisition also relies on billions of dollars of debt from banks and is the biggest buyout of a company since the financial crisis.
The deal would be the biggest leveraged buyout since the global financial crisis.
The acquisition also relies on billions of dollars of debt from banks and is the biggest buyout of a company since the financial crisis.
The deal would be the biggest leveraged buyout since the global financial crisis.
Going private allows Dell, which has been trying to become a one-stop shop for corporate technology needs as the PC market shrinks, to carry out a challenging makeover away from public scrutinyFounded in 1984 by billionaire Mr Dell when he was a student, the company has struggled over the last five years as ever larger numbers of consumers opt for a tablet device rather than a traditional desktop PC or even a laptop.
Last year was the first to see a decline in PC sales since 2001, when the market was recovering from the bursting of the dotcom bubble, according to IHS iSuppli.
The company's struggle was underlined at its last quarterly results, which saw revenues fall 11pc to $13.7bn and operating profits tumble almost 50pc to $589m.
