Dell is set to buy storage technology company Ocarina Networks, the Wall Street Journal reported on Monday.
The Texas-based computer manufacturer announced the deal in a press release that the company is buying California-based Ocarina Networks a small organisation that specialises in technology optimisation.
"Growth of storage is a tremendous challenge to our customers, and we are trying to help them with it," said David Graves, spokesman for Dell's storage and networking division.
Dell has made public its interest in Ocarina’s de-duplication technology, to enhance its EqualLogic range of storage products.
The company expects Ocarina to provide its customers with technology to simplify and compress data, enabling them to store the information cost-effectively on a smaller number of disks.
The acquisition of Ocarina Networks, a start-up company that was founded in 2007, is expected to be finalised by the end of July.
Financial details of the deal have not been disclosed by either company.