Feeds

The deal is done: Dell is buying Compellent

Christmas comes early in Minneapolis

Build a business case: developing custom apps

The deal is on: Compellent has agreed to be bought by Dell for $27.75/share.

That makes a total equity value of approximately $960m, or about $820m, net of Compellent’s cash. The transaction is subject to approval by Compellent’s shareholders and is expected to close in early 2011.

The price is $0.25 higher than the price offered by Dell before the weekend, meaning Dell is spending about another $84m to buy Compellent; the due diligence must have turned up another jewel or two in Compellent's crown.

As expected Dell plans to keep Compellent’s existing operations in Eden Prairie, Minnesota, and will invest in engineering, support, operations and sales capability to grow this business.

Attention will now turn to the detailed positioning of the Compellent storage and the existing iSCSI-focused Dell EqualLogic arrays, and also to how Dell will deal with its co-branded CLARiiON arrays from EMC. Dell's statement said: "Upon closing the transaction, Dell will quickly make Compellent an integral part of its industry-leading storage portfolio, including PowerVault, EqualLogic and Dell/EMC."

The expectation is that the CLARiiON relationship with EMC will quite quickly shrivel and die, although other EMC products sold through Dell will most probably continue.

El Reg expects Dell processor boards to replace the existing SuperMicro ones in Compellent's Storage Centre. It also expects an onslaught of Dell love for Compellent's channel partners as retaining and growing those will be vital for the Compellent operation.

We also expect Dell to help Compellent scale its Storage Centre offering's functionality to make it more attractive to enterprise buyers. For existing Compellent users there should be no change, except perhaps a reinforced feeling that, yes, they did buy a good piece of kit. ®

Boost IT visibility and business value

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
Cutting cancer rates: Data, models and a happy ending?
How surgery might be making cancer prognoses worse
Silicon Valley jolted by magnitude 6.1 quake – its biggest in 25 years
Did the earth move for you at VMworld – oh, OK. It just did. A lot
VMware's high-wire balancing act: EVO might drag us ALL down
Get it right, EMC, or there'll be STORAGE CIVIL WAR. Mark my words
Forrester says it's time to give up on physical storage arrays
The physical/virtual storage tipping point may just have arrived
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?