Feeds

The deal is done: Dell is buying Compellent

Christmas comes early in Minneapolis

Combat fraud and increase customer satisfaction

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. ®

Combat fraud and increase customer satisfaction

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
BOFH: Oh DO tell us what you think. *CLICK*
$%%&amp Oh dear, we've been cut *CLICK* Well hello *CLICK* You're breaking up...
AMD's 'Seattle' 64-bit ARM server chips now sampling, set to launch in late 2014
But they won't appear in SeaMicro Fabric Compute Systems anytime soon
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.