Dell Offers $1 Billion To Buy Compellent

Dell Inc offered to buy data storage company Compellent Technologies Inc for nearly $1 billion after losing out to Hewlett-Packard Co in a bidding war for another storage firm 3Par. A source close to the talks said the bid valued Compellent at $946 million. Dell, HP, EMC and IBM are all jousting for dominance in the storage market as they position themselves for an economic recovery.

Dell said it entered an exclusive agreement with Compellent to negotiate a merger in which it would pay $27.50 per share for the company. It described the talks with Compellent as “advanced discussions” but said there could be no assurance they reach a deal. The companies said they do no plan to comment further until an agreement is reached or discussions are ended.