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December 09, 2010, 8:53 AM EST
By Katie Hoffmann
(Adds shares in fourth, fifth paragraphs.)
Dec. 9 (Bloomberg) -- Dell Inc., the world’s third-largest personal-computer maker, is in exclusive talks to buy data- storage maker Compellent Technologies Inc. for about $876 million.
Dell would acquire all of the outstanding common stock of Compellent for $27.50 apiece in cash, the two companies said in a statement today. The price is an 18 percent discount to the company’s closing price yesterday. Compellent stock had almost doubled in the past two months before today on speculation it will get bought.
Compellent specializes in technology that helps companies store, recover and manage large amounts of data. It might be attractive to an acquirer, such as Round Rock, Texas-based Dell, that wants a larger slice of the growing market for data centers, Roger Cox, an analyst at Gartner Inc. in Stamford, Connecticut, has said.
Compellent, based in Eden Prairie, Minnesota, fell $4.89, or 15 percent, to $28.76 in trading before U.S. exchanges opened, after climbing 12 cents to $33.65 yesterday in New York Stock Exchange composite trading.
Dell added 12 cents to $13.80 in early trading, after rising 8 cents to $13.68 yesterday on the Nasdaq Stock Market.
The companies said there can be no assurances that an acquisition will be completed.
--Editors: Ville Heiskanen, Peter Elstrom
To contact the reporter on this story: Katie Hoffmann in New York at khoffmann4@bloomberg.net
To contact the editor responsible for this story: Peter Elstrom at pelstrom@bloomberg.net
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(Adds shares in fourth, fifth paragraphs.)
Dec. 9 (Bloomberg) -- Dell Inc., the world’s third-largest personal-computer maker, is in exclusive talks to buy data- storage maker Compellent Technologies Inc. for about $876 million.
Dell would acquire all of the outstanding common stock of Compellent for $27.50 apiece in cash, the two companies said in a statement today. The price is an 18 percent discount to the company’s closing price yesterday. Compellent stock had almost doubled in the past two months before today on speculation it will get bought.
Compellent specializes in technology that helps companies store, recover and manage large amounts of data. It might be attractive to an acquirer, such as Round Rock, Texas-based Dell, that wants a larger slice of the growing market for data centers, Roger Cox, an analyst at Gartner Inc. in Stamford, Connecticut, has said.
Compellent, based in Eden Prairie, Minnesota, fell $4.89, or 15 percent, to $28.76 in trading before U.S. exchanges opened, after climbing 12 cents to $33.65 yesterday in New York Stock Exchange composite trading.
Dell added 12 cents to $13.80 in early trading, after rising 8 cents to $13.68 yesterday on the Nasdaq Stock Market.
The companies said there can be no assurances that an acquisition will be completed.
--Editors: Ville Heiskanen, Peter Elstrom
To contact the reporter on this story: Katie Hoffmann in New York at khoffmann4@bloomberg.net
To contact the editor responsible for this story: Peter Elstrom at pelstrom@bloomberg.net
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