Hewlett-Packard outbids Dell for cloud computing firm 3PAR

Friday, September 03, 2010

After a heated bidding contest between two PC heavyweights, Hewlett-Packard has emerged the victor over Dell to acquire data-storage maker 3PAR.

Dell announced Thursday it will not match HP’s offer to pay $33 per share for 3PAR, or about $2.4 billion, clearing the way for HP and 3PAR to enter into a definitive merger agreement.

The transaction for HP to acquire 3PAR has been approved by the boards of directors of both companies, and the deal is expected to close by the end of the year.

“As part of HP, 3PAR’s agile, efficient storage solution will truly thrive, particularly given HP’s ability to accelerate investment in our products and reach new customers around the world,” said 3PAR president and CEO David Scott.

Both HP and Dell are looking to expand beyond the PC business, where profits are shrinking as computer makers cut prices to stay competitive and the cost of parts is increasing, according to the Associated Press. As more companies adopt cloud computing into their businesses, PC companies are trying to take advantage by offering cloud services of their own.