823RA Dell Acquires Compellent: A Compelling Acquisition for a Traditional IT Path Toward Cloud
Authors: Lee Geishecker, Charlie Burns, Bruce Guptill
In a move that clearly illustrates the emerging importance of Cloud IT to even the most traditional IT vendors – and another move toward the “Cloud and Hybrid” future for IT and IT providers – Dell Computer Corp. (“Dell”) announced this week that it has agreed to acquire data storage company Compellent Technologies for $27.75 per share in cash; the total equity value of the deal is $960 million, or $820 million net of Compellent's cash. Compellent’s 2009 revenues were $125.3M, a 38 percent increase over the previous year.
Coming on the heels of Dell’s unsuccessful attempt to acquire storage vendor 3Par, the Compellent move confirms that Dell is jockeying to improve its position not only in storage, but toward a one-stop-shop approach to Cloud IT (“The Roiling Cloud”, 774RA, 24Aug2010). And it confirms that Dell, along with other traditional IT Master Brands, will continue to pursue a Cloud strategy by following traditional IT / data center paths.