Adam Schefter added the compensation for Allen:
Patriots traded a fourth-round pick to Colts for TE Dwayne Allen and a sixth-round pick, per league sources.— Adam Schefter (@AdamSchefter) March 8, 2017
Allen was a third-round selection of the Colts in 2012. He signed a four-year, $29.4 million contract with the Colts last offseason, with about $17 million still owed to him on his deal. In five seasons in Indianapolis, Allen has 126 receptions for 1,451 yards with 19 touchdowns.
The Patriots will now feature a tight ends group with Rob Gronkowski, Allen, Matt Lengel, and Rob Housler. Martellus Bennett, who will become an unrestricted free agent on Thursday, is not expected to return to the Patriots; he caught 55 passes for 701 yards with seven touchdowns in his one season in New England.