Dell Inc. has been buying smaller technology companies expanding its presence in the corporate data center, and now it has agreed to buy data storage solution company- 3PAR.
Dell agreed to buy 3PAR worth about $1.15 billion or $18 a share, net of 3PAR’s cash. Dell is trying to compete with other companies including Hewlett-Packard and IBM by expanding the size of its data center and its ability to offer cloud-computing services.
3PAR, a Fremont, Calif. company, is a leading global provider of highly virtualized utility storage solutions, with advanced data management features, dynamically tiered, multi-tenant arrays for public and private cloud computing.
“We have aligned our storage offerings over the last several years to provide our customers choice and value,” said Brad Anderson, Dell senior vice president, Enterprise Product Group. “3PAR brings the same values of performance, agility and ease-of-use to higher end, virtualized storage deployments as EqualLogic does for the entry-level and mid-range, rounding out our industry-leading solutions portfolio.”
“3PAR has consistently provided customers with the ability to do more with less,” said David Scott, President and CEO of 3PAR. “With Dell we combine a powerful, virtualized storage platform with an outstanding distribution network to deliver this value to an even broader set of customers.”
The deal which is subject to customary closing conditions is expected to close before the end of the year. Based on current estimates, Dell expects the transaction to add non-GAAP earnings in its Fiscal Year 2012.
Source: Press Release