Dell To Acquire Compellent for $27.75 a Share – Beefs up Cloud Computing

Dell and Compellent Technologies, Inc. today announced they have entered into a definitive agreement for Dell to acquire Compellent, a rapidly growing provider of highly-virtualized storage solutions with automated data management features, including tiering and thin provisioning, for enterprise and cloud-computing environments. The acquisition is the latest strategic investment by Dell as it expands its portfolio of enterprise-class storage solutions and is consistent with Dells strategy to help customers better manage data growth, reduce storage costs and dramatically simplify the management of IT infrastructure. Under terms of the agreement, approved by the boards of directors of both companies, Dell will pay $27.75 per share in cash for each share of Compellent for a total equity value of approximately $960 million, and aggregate purchase price of approximately $820 million, net of Compellents cash. The transaction, which is subject to approval by Compellents shareholders and customary closing conditions, is expected to close in early 2011.