3PAR Accepts Dell’s Increased Price of $27 Per Share, with Total Value of $1.8 Billion
Update: 9/2/2010 3Par Accepts HP’s $2.4 Billion Bid, Dell Walks Away with $73 Million
Update: 10:27AM – HP raised its offer to $30 per share or $1.88 Billion
Dell raised its bid for storage company 3PAR, matching HP’s offer of $27 per share, or $1.8 billion. 3PAR’s board has accepted the revised agreement with Dell.
The cash tender offer, through a wholly-owned Dell subsidiary, is for all outstanding shares of 3PAR common stock, without interest, and subject to reduction for any federal back-up withholding or other taxes. The offer documents will be amended to reflect the new offer price, but this will not alter the timing of the acquisition. Unless extended, the tender offer and any withdrawal rights to which 3PAR stockholders may be entitled will expire at midnight, EDT, on Sept. 20, 2010. Following acceptance for payment of shares in the tender offer and completion of the transactions contemplated in the merger agreement, 3PAR will become a wholly-owned subsidiary of Dell.
The transaction, which is subject to government approvals and the satisfaction of other customary conditions, is expected to close before the end of the year. Based on current estimates, the transaction is expected to be accretive to Dell non-GAAP earnings in its Fiscal Year 2012.