Dell made it official today. It is buying Compellent for $820 million, and expects the deal to close early next year.
Dell and Compellent said last Thursday that they were in advanced negotiations for a deal, and most industry experts said they did not expect another serious bidder to emerge.
We will have more details on SearchStorage.com later today, following a press briefing. We expect Dell to answer some of the product positioning issues raised last week as well as its relationship with storage partner EMC.
Dell did say in its release this morning that it will keep Compellent’s operations in Eden Prairie, Minn., and will invest in engineering, support, operations and sales capability to grow the Compellent business. The deal is worth $27.75 per Compellent share. That comes to $960 million, or $820 million minus Compellent’s cash.
The deal winds up a year of consolidation among storage system vendors. Hewlett-Packard acquired 3PAR for $2.35 billion in September after a long bidding war with Dell, and EMC is in the process of closing a $2.25 billion deal for clustered NAS vendor Isilon.