Dell to acquire 3PAR for $1.13bn

16 Aug 2010

Dell announced that it will acquire 3PAR for US$18 a share, approximately US$1.13bn in total.

The deal marked an 87pc premium over 3PAR’s Friday closing price of US$9.65 per share.

This purchase will add to Dell’s existing storage product offering. EqualLogic, another storage company, was bought by Dell for $1.4bn, which proved to be a success for the company.

“We have aligned our storage offerings over the last several years to provide our customers choice and value,” said Brad Anderson, Dell senior vice-president, Enterprise Product Group.

“3PAR brings the same values of performance, agility and ease-of-use to higher end, virtualised storage deployments as EqualLogic does for the entry-level and mid-range, rounding out our industry-leading solutions portfolio,”

3PAR offers a virtualised utility storage platform that allows its users to drive down cloud computing infrastructure, storage and management costs. It had been competing with companies such as IBM, EMC and Hitachi.

David Scott, president and CEO of 3PAR, is looking forward to working with Dell and widening its user base.

“With Dell we combine a powerful, virtualised storage platform with an outstanding distribution network to deliver this value to an even broader set of customers,” said Scott.

This purchase follows Dell’s recent acquisition of Ocarina Networks, which also deals in storage optimisation technology.

Dell expects that the deal will add to its 2012 fiscal year.