After failing in its efforts to acquire storage provider 3PAR despite a $1.8 bid this past summer, Dell has made another move and has agreed to acquire Compellent Technologies, a provider of highly-virtualized storage solutions that help organizations manage and move data. The companies announced today announced they have entered into a definitive agreement for Dell to acquire Compellent.
Under terms of the agreement, Dell will pay $960 Million in cash based on $27.75 per share of Compellent. Net of Compellent’s cash, the deal has aggregate purchase price of approximately $820 million. The transaction, which is subject to approval by Compellent’s shareholders and customary closing conditions, is expected to close in early 2011.
Dell plans to add Compellent to its storage portfolio, plans to keep Compellent’s existing operations in Eden Prairie, Minn., and says it will invest in engineering, support, operations and sales capability to grow this business.
Claiming to be one of the fastest growing enterprise storage companies in the world, Compellent Technologies provides what it calls “Fluid Data storage solutions” that automate the movement and management of data at a granular level, helping organizations to constantly adapt to change, cut costs and secure information against downtime and disaster. The company has more than 3,000 systems installed in 35 countries in various industries.