Dell announced it will pay about $1.15 billion cash for the data-storage company–an 86.5 percent premium over 3PAR’s Friday closing share price of $9.65. 3PAR investors will get $18 a share in cash, Dell said Monday. That's almost double the stock's closing price of $9.65 on Aug. 13. 3PAR makes hardware and software for reducing data-storage requirements.
For Dell, which has been looking to diversify away from its core PC-manufacturing business, adding 3PAR to its portfolio is one more way to do so, solidifying its position in the storage and services markets. The 3Par deal helps bolster Dell’s competitiveness and profitability in the mid & high-end of the Fibre Channel SAN segment and strengthens its position for cloud & virtualized environments (key long term areas of focus). Dell has a best chance to challenge rivals by allowing 3PAR to keep operating by itself, without too tight integration with Dell's existing businesses.
A pure-play PC and server maker no longer, the company is fast transforming into a full-fledged consulting and services concern to boot, something it must do if it’s to compete with enterprise-technology rivals like Hewlett-Packard (HPQ) and IBM (IBM).
Source : sfgate , digital daily
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