Dell (Nasdaq:DELL) Closes Compellent (NYSE:CML) Deal

In a deal that will expand Dell's (Nasdaq:DELL) footprint in the data-storage space, they closed their $820 million deal for Compellent Technologies (NYSE:CML).

Canaccord said, "Dell finalized an $820-million purchase of Compellent Technologies that promises to boost its presence in the data-storage space. Last week, Dell said it was in exclusive talks to buy the company for $27.50 a share, an 18% discount to its prior-day close. The final offer ended up coming in a touch higher, at $27.75 a share. In spite of the low-ball valuation, analysts say it's unlikely that another bidder will emerge for Compellent. 'I don’t think any competitive bids are out there, given prices were low,' said ThinkEquity. The firm added that $27.75 a share is a 'reasonable' price for Compellent. 'It’s interesting that the price is below the market price of the stock, and we’ll have to wait and see if there will be any shareholder lawsuits.' The deal is the latest in a flurry of activity for the data-storage industry, which has been growing quickly on soaring demand for efficient ways to store and access mounting amounts of documents and media. Investors had been waiting for Dell’s response to losing a high-profile bidding war against Hewlett-Packard (NYSE:HPQ) for 3Par in September. Dell sees the acquisition, which should close early next year, adding to earnings excluding items in its fiscal 2012."

Dell was trading at $13.28, down $0.07, 0.52 percent, as of 12:46 PM EST.