Dell agrees $1.6bn 3Par takeover

26 August 2010 Last updated at 12:43 ET

Computer giant Dell has agreed to take over data storage firm 3Par after tabling an improved offer for the company.
Dell says its new offer of $24.30 a share has been accepted by 3Par, following a battle for the company with rival Hewlett Packard (HP).
The new agreement values 3Par at $1.6bn (£1bn), matching an earlier offer tabled by HP on Monday.
Dell said the deal would "dramatically accelerate" 3Par's revenue growth.
"Dell has a demonstrated commitment and track record in integrating and growing acquired companies and nurturing their entrepreneurial and innovative cultures," the company said in a statement.
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However, analysts say that, despite the deal with Dell, HP could well return to the table with a better offer.
With revenues between April and June almost double those of Dell, HP has greater resources to call upon, they say.
"Even though Dell has the balance sheet to step up the offer, they're probably reaching the upper limits of what they can offer," said Ashok Kumar at Rodman & Renshaw.
"At the end of the day, Hewlett-Packard is in a better position to close the deal."
The bidding war for 3Par reflects the growing interest in the industry in "cloud computing" - technology that allows users to access files or services remotely over the internet, rather than just from their own local servers.
3Par says its storage systems can cut storage administration costs by up to 90% and infrastructure costs by up to 75%.
Bid battle
3Par had already signed a takeover agreement with Dell last week, in a deal worth around $1.15bn.
But that included a provision for Dell to match competing bids.
In New York, shares in 3Par fell more than 1.6% following the announcement, suggesting that investors expected a higher bid from Dell.
Shares in both Dell and Hewlett Packard rose.
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