Dell In Advanced Take-Over Talks With Compellent

Dell looks to be on the verge of acquiring storage technology maker Compellent Technologies in an $876 million acquisition deal.

The company said that it was in an advanced stage of talks with Compellent Technologies and is willing to pay as much as $27.50 per share or $876 million. However, Dell warned that the talks could still fall apart.

The Compellent Technologies acquisition deal comes soon after several major high profile takeovers of storage and security solution vendors. The most recent being the acquisition of 3PAR by Hewlett Packard, which Dell lost the bidding war for. HP ended up paying $2.07 billion to buy 3PAR.

Dell's chief financial officer said to CNN Money after their failed acquisition bid last month: "The issue is that there's high demand in this space and a bit of a scarcity factor out there, so we'll have to be pretty darned patient," he said. "After 3PAR, all of those other assets are going to sell at high multiples. Every board is using 3PAR as a starting point, and their expectation is that their valuation will be at an all-time high."