HP outbids Dell for 3PAR

23 Aug 2010

HP has countered Dell’s $1.13bn offer to acquire 3PAR, proposing to buy out the data storage company for $1.6bn.

This calculates at $24 per share, compared with Dell’s previous offer of $18 per share.

The deal has been approved by all of HP’s board of directors and is not subject to any financing contingency.

“HP is uniquely positioned to capitalise on 3PAR’s next-generation storage technology by utilising our global reach and superior routes to market to deliver 3PAR’s products to customers around the world,” said Shane Robinson, executive vice-president and chief strategy and technology officer of HP, in a letter to 3PAR about the offer.

“Together, we will accelerate our ability to offer unmatched levels of performance, efficiency and scalability to customers deploying cloud or scale-out environments, helping drive new growth for both companies.”

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.

Dell wishes to integrate 3PAR with its existing storage product offering, however, HP’s deal represents a 33pc premium above Dell’s original price, throwing the previous offer into question.