HP to acquire 3Par after Dell drops out of sales negotiations
Dell pulls out of running after HP makes $2.1bn offer for 3Par
03 September 2010
Hewlett Packard (HP) is poised to acquire data storage firm 3Par after rival bidder Dell pulled out of sales negotiations.
Dell had agreed a $32 a share offer for 3Par but HP raised its own offer to $33 a share to purchase the company in a $2.1 billion (£1.34 billion) deal.
"We took a measured approach throughout the process and have decided to end these discussions," said Dave Johnson, a Dell senior vice president.
Dell is now entitled to a $72 million (£46.7 million) break fee from 3Par as the data storage firm reneged on their previously agreed deal.
It marks the end of a two week long bidding war between the two computer manufacturers who were both looking to expand the presence in the cloud computing market.
Following the offer, shares in 3Par rose 4.9 per cent to $33.65. The value of the firm's stock has now tripled since Dell first bid for 3Par on 16th August.