(Update: HP mentioned in a webcast that the offer is a follow-up to a previous one that 3Par rejected.)
HP announced this morning that it has made a counter offer to 3Par’s board, proposing that it would buy the company for $1.6 billion in cash — or $24 a share, compared to Dell’s $18 per share. The deal was approved by HP’s board and only needs the approval of 3Par’s board to be finalized. Once approved, HP expects the transaction to close by the end of the year.
In a letter to 3Par CEO David Scott, HP CTO Shane Robison argues that in addition to offering 33 percent more than Dell, there are strategic advantages for 3Par to go along with its offer: “HP is uniquely positioned to capitalize on 3PAR’s next-generation storage technology by utilizing our global reach and superior routes to market to deliver 3PAR’s products to customers around the world.”
HP says that the addition of 3Par’s advanced server technology “would accelerate its Converged Infrastructure strategy, which provides customers with a portfolio of intellectual property across storage, server and networking solutions.”
3Par has raised over $183 million since its founding in 1999, with backing by Integral Capital Partners, Alliance Bernstein, Open Field Capital, Mayfield Fund, Worldview Technology Partners, Menlo Ventures, and Van Wagoner Capital Management. It went public in 2007, even though it was losing money at the time.
VentureBeatVentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative technology and transact. Our site delivers essential information on data technologies and strategies to guide you as you lead your organizations. We invite you to become a member of our community, to access:
- up-to-date information on the subjects of interest to you
- our newsletters
- gated thought-leader content and discounted access to our prized events, such as Transform 2021: Learn More
- networking features, and more