This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Dell's Next M&A Target

ROUND ROCK, Texas ( TheStreet) -- Just hours after Dell (DELL - Get Report) announced its $3.9 billion acquisition of Perot Systems (PER), speculation is already mounting about the tech giant's next M&A target.

Dell's M&A ambitions have been known for some time, with storage and services touted as the two most likely target areas. With Perot Systems, the tech bellwether has ramped up its services business to compete with IBM (IBM) and Hewlett-Packard (HPQ), so storage may be next.

Not for the first time, backup specialist CommVault (CVLT - Get Report) is being mentioned. "We expect the company to remain acquisitive and see CommVault as the best fit within our coverage universe," wrote Jayson Noland, an analyst at R.W. Baird, in a note released Tuesday.

CommVault uses a technology called de-duplication, which aims to ensure that the same pieces of information are not stored. With companies drowning in ever-growing volumes of data, de-dupe is fast emerging as a hot technology, as evidenced by EMC (EMC) and NetApp's (NTAP - Get Report) recent tug of war over Data Domain (DDUP).

With PC sales tanking, Dell needs to re-invent itself as an enterprise computing entity, and has already made a foray into the storage space, snapping up EqualLogic for $1.4 billion last year. Clearly a going concern, Michael Dell recently said that EqualLogic is now four times larger than when the company was acquired.

Even during the recent recession, storage was seen as one of the healthier parts of the tech sector, thanks largely to firms' unbridled data growth. From finance to retail and Internet service providers, companies are under increasing pressure to retain data and many are rethinking their storage strategies. Against this backdrop, large tech players such as EMC have been bolstering their storage stories.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DELL $0.00 0.00%
CRM $66.90 0.00%
CVLT $46.31 0.00%
FALC $1.53 0.00%
NTAP $35.99 0.00%


DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs