Dell Lures Compellent for a $1 Billion Merger
Dell is offering to a buy a cloud computing and data storage company, Compellent to the tune of nearly $1 billion. After a bitter bid loss to arch-rival Hewlett-Packard over the 3Par firm, Dell has set its sails once more, seeking a company that can propel them back into the game. Then, there was Compellent.
Through a spokesperson, the computer maker confirmed last Thursday its quest to buy out Compellent to strengthen its platforms and systems while they are getting back to shape. In an official statement, Dell mentioned “… it is bidding $27.50 a share for Compellent, an 18 percent discount from Wednesday’s closing Nasdaq price. Compellent shares have risen almost 90 percent since late October when Reuters reported that a deal was being discussed. A source close to the talks said the bid valued Compellent at $946 million.”
As usual, there’s a clash of the titans going on as Dell, HP, EMC and IBM battle over the dominance within the storage industry. They’re all setting themselves onto recovery following the economic debacle that started in 2009, leveraging cloud services to meet the economic needs of their clients. Without a doubt, cloud computing has been one of the hot battlefields for these IT key players.
On the other hand, Compellent has been making it to the news lately, due to its recent launch of storage center that focuses on cloud scalability and availability. With storage centers being the prime commodity of the business, it is more likely to give Dell’s pushing efforts a sturdy support while it tries to regain its footing once again. Compellent has inked deals with numerous organizations, including its partnership with VMware being among the latest.
A report posted in SiliconAngle mentioned Dell Inc’s very promising 3rd quarter financial performance, and a quite impressive vision lays before us. This has been going on for several months now and the plan to buy Compellent is a firm statement that Dell is really sincere when they said that they do want to snatch the top post once again. We’ll see how this proposal closes, for better or worse.
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