(

Adds Dell's share price and updated Microsoft stock price.)

NEW YORK (

TheStreet

) -- After weeks of

rumors

and speculation,

Dell

(DELL) - Get Report

said founder and CEO Michael Dell and

Silver Lake Partners

are

acquiring

the company in a $24.4 billion deal.

Under the terms of the deal, Dell shareholders will receive $13.65 a share in cash, a premium of 25% to the company's closing price Jan. 11, when rumors of the deal emerged.

The transaction will be financed through a combination of cash and equity from Michael Dell, cash from investment funds affiliated with Silver Lake, cash invested by Michael Dell's investment firm,

MSD Capital

, and a $2 billion loan from

Microsoft

(MSFT) - Get Report

. The deal will also be financed by a rollover of existing debt, and debt financing from

Bank of America Merrill Lynch

,

Barclays

,

Credit Suisse

and

RBC Capital Markets

.

"I believe this transaction will open an exciting new chapter for Dell, our customers and team members," Michael Dell wrote in a statement. "We can deliver immediate value to stockholders, while we continue the execution of our long-term strategy and focus on delivering best-in-class solutions to our customers as a private enterprise."

The deal is expected to close before the end of Dell's fiscal 2014 second quarter.

Dell, who owns 14% of Dell's common shares, will continue to lead the company as CEO once the transaction is completed. He will maintain a "significant equity investment" by contributing his shares of Dell to the new company, as well as making a "substantial additional cash investment," according to the statement.

Shares of the No. 3 PC maker, once the world's largest, were halted early on Tuesday, but resumed trading around 10 a.m., and are up 1.1% at $13.41. Microsoft shares crept up 0.4% to $27.54.

Analysts have already said a buyout will help Dell

reinvent itself

, boosting its push into lucrative areas such as enterprise services.

Dell has suffered as a result of the weakening PC market, and has also come under pressure from tablet devices such as

Apple's

(AAPL) - Get Report

phenomenally successful iPad.

Last month, tech-research firm

Gartner

published its report on worldwide PC shipments, which declined during the fourth quarter as consumers opted for tablets. Dell trailed

HP

(HPQ) - Get Report

and

Lenovo

, and its market share slipped to 10.2% from 12.2% in the prior year's quarter.

-- Written by James Rogers in New York.

Follow @jamesjrogers

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