NEW YORK, (

TheStreet

) --

Dell

(DELL) - Get Report

says it has a deal for

Compellent

(CML)

after it bumped up its bid by 25 cents a share for the Eden Prairie, Minn. data storage outfit.

The two companies announced Monday that they had reached a purchase agreement of $27.75 a share worth a total of $960 million, or $820 million excluding the cash on Compellent's books.

Shares of Compellent have dropped 14% since Dell's "take-under" announcement it was looking to pay $27.50 per share for the deal on Thursday. Compellent shares, whipped up by the frenzied deal making spree this year among storage shops, had been trading at a $34, a 52-week high prior to the Dell move.

Speculation that Dell would make another bold attempt to buy its way into the storage sector had been heating up last month, as

analysts offered their best guesses

on what Dell might do.

Compellent shares dropped 2% to $28 in premarket trading Monday. With the stock still trading for more than the Dell bid, investors seem to be betting that a better offer or bidding war is still likely.

The Compellent shareholders will need to approve the Dell takeout.

--Written by Scott Moritz in New York.>To contact this writer, click here: Scott Moritz, or email: scott.moritz@thestreet.com.To follow Scott on Twitter, go to http://twitter.com/MoritzDispatch.>To send a tip, email: tips@thestreet.com.