Monday, September 13, 2010

HP Going To Purchase 3PAR For $2.35 Billion

HP and 3PAR Inc. announced they have entered into an agreement under which HP will purchase 3PAR at a rate of 33 USD per share or an enterprise value of 2.35 billion USD. The transaction has been approved by the boards of directors of both the companies.

3PAR is a leading global provider of utility storage, a category of highly virtualized, dynamically tiered, multi-tenant storage arrays built for public and private cloud computing. The company’s virtualized storage platform was built from the ground up to be agile and efficient and to eliminate the limitations of traditional storage arrays for utility infrastructures. 3PAR designs its products to reduce power consumption to help companies meet their green computing initiatives and to cut storage total cost of ownership.

“HP and 3PAR is a winning combination that will accelerate HP’s Converged Infrastructure strategy and bolster our ability to provide customers with the industry’s highest levels of performance, efficiency and reliability,” said Dave Donatelli, executive vice president and general manager, Enterprise Servers, Storage and Networking, HP. “We intend to invest in 3PAR’s technology to create long-term value for our stakeholders.”

“As part of HP, 3PAR’s agile, efficient storage solutions will truly thrive, particularly given HP’s ability to accelerate investment in our products and reach new customers around the world,” said David Scott, president and chief executive officer, 3PAR. “3PAR has built a reputation for delivering enterprises and cloud computing service providers the ability to do more with less. HP’s global reach, strong routes to market and our shared culture of innovation will allow even more organizations to experience the transformative value of 3PAR’s technology.”

When HP purchases 3PAR the existing storage solutions of HP will become dynamically strong. HP’s global presence, commitment to innovation and proven track record of integrating acquisitions will provide growth opportunities for 3PAR going forward. 3PAR also announced that it has terminated its merger agreement with Dell Inc. and paid Dell the $72 million termination fee required to be paid to Dell as a condition to terminating the merger agreement.