Thaindian News

ROUND ROCK, TEXAS (BNO NEWS) — Dell announced on Friday that 3PAR has accepted its increased offer to acquire the data-storage company for $27 per share in cash, matching Thursday’s offer by Hewlett-Packard.

The new offer comes a day after Hewlett-Packard announced it had raised its offer to acquire 3PAR to $27 per share, outbidding rival Dell which offered $24.30 per share just hours earlier. Friday’s offers by Dell matches Hewlett-Packard’s latest offer.

The new Dell-3PAR accord was reached under a provision in an existing agreement between the companies that allows Dell to match competing bids.

Dell said it continues to believe that the acquisition of 3PAR, with its ‘industry-leading storage technology’, is important to its customers and the company believes it will enhance its position in utility-storage solutions. “Dell also believes that its global brand and broad global reach will dramatically accelerate 3PAR’s revenue growth,” a statement said.

The cash tender offer which equals approximately $1.8 billion is for all outstanding shares of 3PAR common stock, without interest, and subject to reduction for any federal back-up withholding or other taxes.

3PAR, in a separate statement, confirmed that it accepted the matching offer. “3PAR and Dell have signed a second amendment to their previously announced merger agreement reflecting the new offer price, and maintaining the termination fee unchanged at $72 million, which is payable in the event that 3PAR receives and accepts another unsolicited acquisition proposal that its board determines to be superior to Dell’s increased offer,” the company said, leaving room for a new offer from Hewlett-Packard.

If Hewlett-Packard does not come up with a new offer, Dell said the transaction - which remains subject to government approvals - is expected to close before the end of 2010.

Shares of 3PAR jumped 10.64 percent to $28.80 in premarket trading on early Friday morning.

Dell and Hewlett-Packard are both fighting to acquire a maker of storage arrays that is well-suited to virtualized environments. This would allow both of them to expand in the fast-growing market for private cloud infrastructure.