Computer manufacturer Dell Inc. is offering to buy out data storage company Compellent Technologies at the discounted price of $876 million, the two companies announced in a joint statement.
The two tech businesses are “engaged in advanced discussions regarding a possible business combination involving the two companies,” the statement hosted on Compllent’s website read.
Dell is offering the Eden Prairie, Minn.-based Compellent just south of $900 million, or $27.50 per share in cash, the Wall Street Journal and Bloomberg News reported. That amounts to only 82 percent of the market value of the company measured from Wednesday’s stock values.
Compellent stock (CML, NYSE) plunged Thursday on the buyout news, shedding 13.7 percent of its value ($4.61) to $29.04. Dell stock (DELL, Nasdaq) stayed steady, closing by three pennies (0.23 percent) lower to $13.65.
Dell, the third-largest computer manufacturer in the world, is seeking to expand its data center products, including servers and data storage, and rely less on selling personal computers.
In their joint statement, Dell and Compellent said that a deal was not imminent.
“There can be no assurances that an agreement will be reached or that a transaction will be consummated,” the statement read.
The two tech businesses are “engaged in advanced discussions regarding a possible business combination involving the two companies,” the statement hosted on Compllent’s website read.
Dell is offering the Eden Prairie, Minn.-based Compellent just south of $900 million, or $27.50 per share in cash, the Wall Street Journal and Bloomberg News reported. That amounts to only 82 percent of the market value of the company measured from Wednesday’s stock values.
Compellent stock (CML, NYSE) plunged Thursday on the buyout news, shedding 13.7 percent of its value ($4.61) to $29.04. Dell stock (DELL, Nasdaq) stayed steady, closing by three pennies (0.23 percent) lower to $13.65.
Dell, the third-largest computer manufacturer in the world, is seeking to expand its data center products, including servers and data storage, and rely less on selling personal computers.
In their joint statement, Dell and Compellent said that a deal was not imminent.
“There can be no assurances that an agreement will be reached or that a transaction will be consummated,” the statement read.
