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Dell Announces Compellent Acquisition Agreement; Shareholder Approval Still Pending

Dell announced an agreement to acquire Compellent in 2010, but the deal had not yet closed: shareholder approval remained outstanding.
From TheFinanceBase Team1 min to read
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No—not yet. On December 13, 2010, Dell announced a definitive agreement to acquire Compellent Technologies, but the contemporaneous report said Compellent shareholder approval was still outstanding and the companies expected the transaction to close in early 2011. “Deal is done” described the agreement, not a completed acquisition.

What Dell announced

Dell agreed to acquire Compellent for $27.75 per share. A December 13, 2010 report by Data Center Knowledge put the transaction’s implied value at about $960 million and said Dell would pay $820 million because Compellent’s cash holdings were included. Those are figures reported at the time of the announcement, not independently verified closing figures.

The report said the transaction remained subject to Compellent shareholder approval. Dell and Compellent expected a close in early 2011; that expectation is not confirmation of when or whether the transaction ultimately closed.

What Compellent made

Compellent made virtualized storage systems for enterprise and cloud-computing environments. Its systems included automated data-management functions such as tiering and thin provisioning. Tiering helps manage data across storage resources, while thin provisioning allocates storage capacity as it is needed rather than reserving all of it in advance.

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Why Dell said the acquisition fit

Dell described Compellent as an addition to its expanding enterprise storage portfolio, which the report framed alongside PowerVault, EqualLogic, and Dell/EMC offerings. That announcement explains the stated portfolio rationale; it does not establish technical compatibility, product rankings, or what later happened after integration.

Brad Anderson, Dell senior vice president, Enterprise Product Group, said upon the announcement: “Compellent is a natural complement to Dell’s expanding enterprise storage portfolio.”

Phil Soran, Compellent president, CEO, and chairman, said: “We are excited about our merger with Dell.” He also described it as “the next logical step in our goal to scale our products, channel and team worldwide.” These were the executives’ stated expectations at announcement, not evidence that the anticipated benefits later occurred.

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