Late last week I put together a post that outlined the ongoing saga between Dell and HP and their battle to acquire 3Par, a leading provider of utility storage, a category of highly virtualized and dynamically tiered storage arrays built for public and private cloud computing.
Well, it looks as if Dell has finally thrown in the towel and conceded to HP's most recent offer of US$33 per share, making the acquisition worth approximately US$2.07 billion. Dell had the opportunity to match HP's most recent proposal, but opted to pull out of the two-horse race for the Fremont, California-based company.
Dave Johnson, senior vice president, corporate strategy at Dell had this to day about the decision:
“We took a measured approach throughout the process and have decided to end these discussions. We believe our strategy of creating open, affordable and capable solutions resonates well with customers and will enable us to continue to outgrow the industry."
Brian Gladden, Dell's chief financial officer, added this:
“We will continue to put the interests of our customers and shareholders at the forefront of all our decisions. Our focus is to create long-term value.”
HP's prevailing bid is nearly double Dell's initial offer, which triggered the bidding frenzy.
In fiscal 2010, 3PAR generated $194 million in sales, up 5 per cent compared to 2009. Prior to fiscal 2010, the company experienced rapid growth levels, increasing revenues by 57 per cent and 78 per cent in fiscal 2009 and 2008, respectively. However, 3Par's net earnings throughout this three-year period have never made it into the black, with the company reporting losses ranging from US$2 million in fiscal 2009 to US$12 million in fiscal 2008.