HP announced today that it has submitted to 3PAR Inc. a proposal to acquire all of the outstanding shares of 3PAR for $24.00 per share in cash, or an enterprise value of $1.6 billion.
The proposed transaction represents a 33.3 percent premium above the price proposed by Dell Inc. HP’s proposal is not subject to any financing contingency and has been approved by HP’s board of directors. Once approved by 3PAR’s board, HP expects the transaction to close by the end of the calendar year.
This is a bit of a development, I didn’t really see HP jumping in and trumping Dell’s offer by so much. In my opinion, Dell can not allow themselves to be outbid by HP for 3PAR. HP is already well positioned with their existing storage assets and 3PAR would give them even more of a lead on Dell. For Dell, the acquisition of 3PAR could really help Dell close the gap substantially between them and HP in the storage arena. Guess we will find out if Dell feels the same way.