HP outbid Dell, and win the race for 3Par

Friday, September 03, 2010: The multi-billion dollar bidding war for 3PAR is officially over. After Dell pulled out of the race to acquire the data storage company this morning, 3PAR announced that it has terminated its merger agreement with Dell and also paid the company the $72 million termination fee. Meanwhile, 3PAR has entered into a fresh agreement with HP under which the latter will now purchase 3PAR, through a cash tender offer of $33 per share in cash, or an enterprise value of $2.35 billion. The transaction has been approved by the boards of directors of both companies.

Combining 3PAR’s utility storage products with HP’s existing storage solutions will strengthen HP’s storage, server and networking portfolio. According to the company, 3PAR will accelerate HP’s highly successful converged infrastructure strategy by driving growth in the fast-growing virtual data centre and cloud computing markets.

“HP and 3PAR is a winning combination that will accelerate HP’s converged infrastructure strategy and bolster our ability to provide customers with the industry’s highest levels of performance, efficiency and reliability,” said Dave Donatelli, executive vice president and general manager, enterprise servers, storage and networking, HP. “We intend to invest in 3PAR’s technology to create long-term value for our stakeholders.”

“As part of HP, 3PAR’s agile, efficient storage solutions will truly thrive, particularly given HP’s ability to accelerate investment in our products and reach new customers around the world,” said David Scott, president and chief executive officer, 3PAR. “3PAR has built a reputation for delivering enterprises and cloud computing service providers the ability to do more with less. HP’s global reach, strong routes to market and our shared culture of innovation will allow even more organisations to experience the transformative value of 3PAR’s technology.”

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