Dell Counters HP with $1.6B Bid for 3PAR
August 26th, 2010 By: Rich Miller
Dell has raised its acquisition offer for storage vendor 3PAR to $24.30 a share, slightly higher than the $24 a share bid from HP, and said that 3PAR had accepted its bid. Of course, 3PAR’s board previously accepted an $18 a share offer from Dell, so the focus now shifts back to whether HP will up the ante with another bid.
In a press release, Dell said that its initial offer for 3PAR included “a provision for matching competing bids.” The improved offer values 3PAR at $1.6 billion. “With the 3PAR acquisition, Dell will have the broadest set of differentiated storage solutions in the market today,” said Dave Johnson, senior vice president, Dell corporate strategy.
Is a higher bid coming? Investors certainly seem to think so. Shares of 3PAR (PAR) are trading this morning at $26.37, more than $2 a share above Dell’s latest offer.
This is an example of HP and Dell racing to skate to where the puck will be and a very smart move to play in the cloud space. 3Par’s storage is on-par with HDS and EMC and far beyond NetApp, Equalogics, Dell, or HP storage. 3Par stands among the best with the sophistication of their API, which is 5 years ahead of most major storage vendors. Most S3 storage available today are far too slow to be used for Enterprise Private cloud offerings. To move an enterprise exchange server, SQL server, MySQL server, etc. into the cloud requires 3PAR, EMC, or HDS performance, as well as their API to configure cloud storage auto-magically via code.