The headline says it all.
Dell Inc. said Monday it plans to purchase data-storage company 3PAR Inc. for about $1.15 billion in cash, as the personal-computer maker seeks to boost its offerings for corporate technology departments.
Dell will pay $18 a share for 3PAR, an 86.5% premium to the Fremont, Calif.-based company’s Friday closing price of $9.65.
Firstly, congrats to 3PAR. Storage is a tough market. Hopefully, with DELL as its backing, it can go further and go up against the likes of EMC.
The storage industry has continue to consolidate including the recent Oracle acquisition of SUN.
Without strong backing, it will take Â a long time for 3PAR to build up the channels and replace theÂ incumbent.
On the trading front, it has been a miss for me. I have wanted to buy some shares of 3PAR with this market correction.
Guess, DELL knows that this is a good time to buy (seeing that 3PAR’s shares is not going to move ahead much).
I think this is a good move on DELL’s part. Hopefully, the management can work together and provide alternatives to the industry.