Dell’s Growth Slump Shows Urgency of Silver Lake Buyout

Dell Inc.’s board is predicting another year of lackluster growth in fiscal 2014 as demand for personal computers ebbs, underscoring the urgency behind the company’s decision to be taken private, documents show.

Sales for the year ending in January will slip to $56.5 billion, and Dell’s PC business will shrink by $10 billion over four years, according to projections in a proxy statement filed yesterday with regulators. Operating income will be stagnant at $3 billion, according to the documents, which shed light on a $24.4 billion buyout proposal led by Silver Lake Management LLC, as well as plans by Chief Executive Officer Michael Dell to accelerate a turnaround after going private.