3PAR’s multi-tenant, clustered architecture enables IT organizations to deliver software and hardware as a service, offering an agile, efficient storage infrastructure platform optimized for highly virtualized data centers and cloud computing. This acquisition extends Dell’s storage capabilities, enabling Dell to help customers capitalize on the era of virtualization.
According to the company announcement, Dell is working toward a goal of radically reducing data management costs and significantly streamlining operations. 3PAR’s product portfolio complements Dell’s goal to make IT simpler and more affordable. 3PAR addresses the problem of costly, complex, and rigid IT environments and enables organizations to treat storage as a utility— allowing them to use and pay for only the capacity and performance they need, and only when they use it.
“We have aligned our storage offerings over the last several years to provide our customers choice and value,” Brad Anderson, Dell senior vice president, Enterprise Product Group, was quoted to say. “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.”
The transaction is valued at approximately $1.15 billion, net of 3PAR’s cash. Under the terms of the agreement, Dell will commence a tender offer to acquire all of the outstanding common stock of 3PAR for $18 per share in cash. The value of the deal is an 86.5 percent premium over 3PAR’s Friday closing share price of $9.65.
Terms of the acquisition were approved by the board of directors of each company. The transaction, which is subject to customary closing conditions, is expected to close before the end of the year.
Julie Langenkamp is editor-in-chief of Information Management. She can be reached at julie.langenkamp@sourcemedia.com. Follow her on Twitter at @JulieLangenkamp.
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