HP has come out on top following a bidding war with tech rival Dell and confirmed it will acquire storage and cloud computing vendor 3PAR for $2.35 billion (€1.82 billion).
The will they/won’t they acquisition battle has been going on for a number of weeks, with Dell finally pulling out yesterday leaving HP to finish the deal.
HP claims the purchase, once completed, will boost its converged infrastructure strategy and aid storage market growth.
“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, of HP’s enterprise servers, storage and networking arm. “We intend to invest in 3PAR’s technology to create long-term value for our stakeholders.”
Dell hasn’t lost out entirely though – 3PAR has agreed to pay some $72 million (€55 million) to the company as part of a merger agreement termination fee.
3PAR also announced that it has terminated its merger agreement with Dell Inc. and paid Dell the $72 million termination fee required to be paid to Dell as a condition to terminating the merger agreement.
“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 organizations to experience the transformative value of 3PAR’s technology.”
The merger, which has been approved by HP’s board, is expected to be done and dusted by the end of the year. The offer of $33 a share is only valid until 24 September.
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