3PAR accepts increased Dell bid

Dell seems to have beaten HP in the race to acquire cloud storage firm 3PAR by having its $1.6bn (£1.03bn) bid accepted.

Dell had previously agreed to acquire 3PAR for $1.15bn (£737m) at $18 (£11.59) per share, in a deal that included a clause which would allow it to match any competing bids.

HP jumped in with an audacious $1.6bn offer for the company and 3PAR gave Dell three days to match the offer.

It seemed, however, that the 3PAR board always preferred Dell to HP. The latest SEC filing noted that until HP's offer was confirmed as being the highest bid, the board would have continued to recommend that shareholders accept Dell's offer.

In any case, Dell upped its bid to $24.30 (£15.64) per share in cash.

Dell said that the acquisition of 3PAR will complement and extend the breath of its storage portfolio.

The manufacturer is committed to providing its datacentre customers with open, capable and affordable solutions and storage is at the forefront of this strategy, explained Dave Johnson, senior vice presiden of Dell corporate strategy.

“With the 3PAR acquisition, Dell with have the broadest set of differentiated storage solutions in the market today,” he said.

The transaction is subject to government approvals and the satisfaction of other customary conditions and is expected to close before the end of the year.

Based on current estimates, the transaction is expected to be accretive to Dell non-GAAP earnings by its Fiscal Year 2012, the firm added.