Dell Boosts Offer for 3Par, Topping Hewlett-Packard
Dell had previously signed an agreement to acquire 3Par for $18 per share, with a provision for matching competing bids. That competing bid came shortly after when Hewlett-Packard (HPQ) topped Dell's bid by 33.3% and offered $24 a share in cash. Dell and 3Par have signed an amendment to the agreement reflecting the new offer price.
The 3Par acquisition complements and extends the breath of its storage portfolio, Dell said in a statement. It believes that its global brand and broad global customer reach will dramatically accelerate 3Par's revenue growth.
Dell is committed to providing its data center customers with open, capable and affordable solutions. "Storage is at the forefront of this strategy," said Dave Johnson, senior vice president, Dell corporate strategy. "With the 3Par acquisition, Dell with have the broadest set of differentiated storage solutions in the market today."
Dell's tender offer will expire at midnight, on Sept. 20, 2010, unless extended. Otherwise, the transaction, which is subject to government approvals and the satisfaction of other customary conditions, is expected to close before the end of the year. Based on current estimates, Dell said the transaction is expected to be accretive to earnings by its fiscal year 2012.