Dell outbids HP for storage company 3PAR
Computer maker Dell will be acquiring virtualized storage company 3PAR for $1.6 billion, the companies announced Thursday. The announcement follows a bidding war for the company that took place between Dell and rival HP.
Dell increased its bid for 3PAR to $24.30 per share; considerably higher than the $18 per share offer it made one week prior. The bigger tender offer comes as an answer to a competing bid placed by HP just three days ago for $24 per share.
A statement from 3PAR today rather succinctly explained Dell's zealous interest in the company:
"Dell's desire for 3PAR is driven, in part, by its belief that 3PAR...is important to Dell's customers and will enhance its position in cloud-based storage applications," the statement read.
Indeed, Dave Johnson, senior vice president of Dell corporate strategy today said, "Storage is at the forefront of this strategy...With the 3PAR acquisition, Dell will have the broadest set of differentiated storage solutions in the market today."
The tender offer will expire at midnight on September 20, and after all the shares are bought back and regulatory approval is met, 3PAR will become a wholly-owned subsidiary of Dell.