Why the Bidding War for 3Par is Great News for Green IT

EnterpriseITplanet.com / Green (Aug 24 2010) Cloud Computing , Storage

1. Wall Street is buzzing this week over the bidding war that has erupted between Dell and HP for 3Par. A brief recap: 3Par has been on the market for a couple of months with an auction. Both Dell and HP submitted sealed bids, and 3Par went with Dell which offered a higher bid than HP. Dell and 3Par then entered into a period of exclusive negotiations which resulted in Dell's agreement to buy 3Par for $18 a share, or about $1.15 billion, about 5.6 times greater than 3Par's annual sales, which are only $204 million (3Par has never been profitable). For Dell, acquiring 3Par would allow it to enter the enterprise data center storage market by itself, rather than reselling EMC products which it now does. Dell says it would continue offering to sell EMC products alongside 3Par even if the acquisition goes through. (Read Full Article)

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