Dell, which started out by making desktop computers, has a growing server business (Photo: Dell)

Dell has agreed to be acquired by the company's founder, Michael Dell, and technology investment firm Silver Lake for a total of 24.4 billion dlrs.

Michael Dell, who owns 14 pc of the shares in the company, will continue to run the computer maker.

Dell shareholders will receive 13.65 dlrs a share, which is a 25 pc premium over Dell's closing share price on January 11.

Michael Dell first approached the company's board about taking Dell private in August, 2012. The computer maker has been struggling to adapt its business to an era where computers, its traditional strength, are rapidly being replaced by tablets, smartphones and other end-user devices.

A private company tends to get more time to implement a new business strategy than a publicly traded corporation, which has to report quarterly earnings and respond to often vocal shareholder concerns.

Michael Dell said in a statement that Dell will continue to implement a strategy that has evolved and has yielded results over the past four years. "But we recognize that it will still take more time, investment and patience," he added.

The Dell founder said he was committed to his company and that he had "put a substantial amount of my own capital at risk."

In addition to funding that will come from Michael Dell and Silver Lake, software maker Microsoft will provide a 2 billion dlr loan to help fund the transaction.