Dell adds storage solutions provider to its portfolio
Compellent Technologies will join PowerVault, EqualLogic and Dell/EMC
- By David Hubler
- Dec 13, 2010
Dell Corp. will acquire Compellent Technologies Inc., a provider of virtualized storage solutions, in a stock purchase transaction.
Under terms of the agreement, approved by both boards of directors, Dell will pay $27.75 per share in cash for each share of Compellent for a total equity value of approximately $960 million.
The aggregate purchase price is approximately $820 million, net of Compellent’s cash, the computer giant said today in its announcement.
The acquisition is the latest strategic investment by Dell as it expands its portfolio of enterprise-class storage solutions, the announcement said.
Compellent provides virtualized storage solutions with automated data management features, including tiering and thin provisioning, for enterprise and cloud-computing environments.
The company sells its solutions through an extensive network of channel partners, which Dell said it plans to maintain and enhance.
Dell also signed a reseller agreement with Compellent that extends the storage portfolio it can offer its worldwide customer base, effective immediately.
Upon closing in early 2011, Compellent will become an integral part of Dell’s storage portfolio, which includes PowerVault, EqualLogic and Dell/EMC, according to the announcement.
Compellent’s existing operations will remain in Eden Prairie, Minn., and Dell will invest in engineering, support, operations and sales capability to grow the business.
Dell Computer Corp., of Round Rock, Texas, ranks No. 11 on Washington Technology’s 2010 Top 100 list of the largest federal government contractors.
David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.