For Immediate Release
Chicago, IL – August 17, 2010 – Zacks.com Analyst Blog features: Dell Inc. (DELL), 3PAR Inc. (PAR), EMC Corp. (EMC), International Business Machines Corp. (IBM) and Hewlett-Packard Co. (HPQ ).
Here are highlights from Monday’s Analyst Blog:
Dell To Acquire 3PAR For $1.15B
Dell Inc. (DELL) signed a definitive agreement to acquire enterprise storage products manufacturer 3PAR Inc. (PAR). The deal has been valued at $1.15 billion.
Under the terms of agreement, Dell will pay $18 for each outstanding common share of 3PAR in cash, an 86.5% premium to the price end of trading on Friday. 3PAR’s share price has shot up since and is currently near the offer price.
The terms of the agreement were approved by the Board of Directors of both companies. Dell expects the deal to close by the end of fiscal 2010 and to be accretive to non-GAAP earnings by fiscal 2012.
Founded in 1999, 3PAR evolved as the leading provider of systems and software for data storage and information management. 3PAR pioneered in the creation of “thin provisioning”, a mechanism that applies to large-scale centralized computer disk storage systems, Storage Area Networks (SANs) and storage virtualization systems. Thin provisioning allows space to be easily allocated to servers, as and when required. 3PAR’s primary competitors in the enterprise storage market are EMC Corp. (EMC), Hitachi Data Systems, International Business Machines Corp. (IBM)and Hewlett-Packard Co. (HPQ ).
Dell intends to integrate 3PAR’s storage solutions into its innovative storage portfolio to offer targeted solutions for every storage vertical.
3PAR’s storage product arrays are expected to meet Dell’s target of providing efficient data management solutions, thereby reducing costs and streamlining workloads.
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