Dell To Acquire Compellent For $960 Million
Dell Inc. will acquire data-storage company Compellent Technologies in a cash deal valued at $960 million, the two companies said on Monday.
Dell said it plans to integrate Compellent’s technology, which enables businesses to store large amounts of data online, into its business storage solutions portfolio.Â
"Compellent is a natural complement to Dell’s expanding enterprise storage portfolio," said Dell executive Brad Anderson.
"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."
Net of Compellent’s cash, Dell said it will pay $820 million, or $27.75 per share — a 17 percent discount from before the two companies announced last week that they were negotiating a deal.Â Â Prior to the announcement, shares of Compellent had risen 90 percent since late October, when reports of a possible deal began surfacing.
The acquisition is only the latest in a series of deals made by large technology firms as they move to position themselves to offer “one stop shop” solutions for corporate customers.Â
Shares of Compellent’s stock were down 3 percent, or 87 cents, on Monday, closing at $27.84 (9 cents above Dell’s offer).
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