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Dell (NASDAQ:DELL) announced today that it has agreed to acquire Compellent Technologies (NYSE: CML), a data storage company based in Eden Prairie, Minnesota, for $960 million, or $27.75 per share, in cash.

The purchase price is higher than the $27.50 a share when Dell first announced the deal last week.

"Compellent is a natural complement to Dell's expanding enterprise storage portfolio. The Compellent storage platform will enable Dell to provide customers additional mid- and high-end network storage solutions that simplify and reduce the cost of data management," said Brad Anderson, the Senior Vice President of the Enterprise Product Group at Dell.

The deal comes after Dell lost out to HP (NYSE:HPQ) in the bid for 3Par (NYSE:PAR) back in September.

Technology firms like Dell, HP, and IBM have been busy snapping up companies in the data storage space to capitalize on the shift to cloud computing.

Dell’s data storage business portfolio already includes PowerVault, EqualLogic and Dell/EMC.

After closing of the transaction, Dell plans to keep Compellent's existing operations in Eden Prairie, Minnesota.

The transaction, subject to approval by Compellent's shareholders and customary closing conditions, is expected to close in early 2011.

Dell’s shares have dropped 3.2% to trade at $13.46 as of 11:18 am EST.

Disclosure: None