Dell Inc agreed to buy data storage company Compellent Technologies Inc for about $960 million in cash, to expand beyond PCs and catch up with rivals Hewlett-Packard Co and IBM in technologies like cloud computing.
Shares of Dell dropped nearly 1 percent early Monday after it announced that it would offer $27.75 a share for Compellent, a price that is about a 3 percent discount to Compellent’s closing price on Friday on the New York Stock Exchange.
Compellent shares were down 2.4 percent, or 71 cents, at $28 in premarket trading, although they were still trading nearly 1 percent above Dell’s bid.
Dell will pay $820 million, net of cash.
Compellent shares have risen about 46 percent since late October when Reuters first reported the deal was being discussed.
Monday’s deal was widely expected after Dell and Compellent announced last week that they were holding “advanced discussions.” At that time, Dell said it would bid $27.50 a share.