Dell Claims Victory in 3PAR Bidding War

Outbid earlier this week by HP, Dell fights back with a $1.6 billion offer for the utility storage vendor.


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Posted on Aug 26, 2010

Dell announced today that 3PAR, a maker of virtualized storage systems, has accepted a takeover bid of $24.30 per share in cash, or approximately $1.6 billion.

The announcement came just days after Dell rival Hewlett-Packard offered $24 per share to acquire 3PAR, a counteroffer to Dell’s initial bid of $18 per share, or $1.15 billion. Dell’s original agreement with 3PAR included a provision that it would match competing bids, and so it did. Today, Dell upped the HP offer by $0.30, enough for 3PAR’s board of directors, who are recommending that stockholders accept Dell’s tender offer.

Both Dell and HP want 3PAR for its multi-tenant, clustered storage architecture for virtualized data centers and cloud computing, which enables IT organizations to deliver software and hardware as a service.

Dell is intent on filling out its enterprise storage strategy. Dell acquired EqualLogic, a provider of storage area networks (SANs) for small and mid-sized companies, in 2008, and in 2009 purchased IT services company Perot Systems. The 3PAR deal furthers its metamorphosis into a high-end storage provider that can compete in the cloud computing market.

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