Dell puts finishing touches on acquisition, data storage industry expected to adjust accordingly
The deal comes after Dell lost a high-stakes bidding war with Hewlett-Packard ( HPQ ) for 3Par (PAR) as the data storage industry continues growing. Once Dell lost to Hewlett-Packard, speculation about its interest in Compellent Technologies increased. Compellent's shares also tripled in value since August.
The process of acquiring Compellent was a "very friendly relationship during discussions relative to the transaction" and that the deal includes a "reasonable" break-up fee, according to conference call remarks from Dave Johnson, senior vice president for corporate strategy at Dell.
The accepted deal was Dell's offer to pay $27.89 per share, which totals $820 million. The deal is expected to close in early 2011.
Another Dell official said the deal will help propel the industry forward by offering clients one type of storage for all needs. Rivals will be influenced to put effort into keeping up.
"We, on the other hand, are building it from scratch," Brad Anderson, Dell enterprise products senior vice president, told the Wall Street Journal. "We like that position, frankly."
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