Is your business saddled with old equipment and bloated software? Hewlett Packard feels your pain. The OEM today rolled out its new "HP Get Thin Guarantee Program" designed to help clients reduce storage capacity requirements by 50 percent or more when they replace legacy equipment with HP 3PAR Utility storage. And in addition to cutting your storage footprint, HP says you'll save power and costs, too.
Just as many imagined, Dell has finally given up its pursuit of data storage provider 3PAR after engaging in a fierce bidding war with arch-rival Hewlett-Packard for around two weeks. Once the world's leading PC maker, Dell announced earlier today that it won't be increasing its most recent bid to acquire 3PAR, making the coveted storage vendor's acquisition by HP a mere formality.
The deal worth $2.4 billion, or $33 per share, was quickly approved by the boards of directors of both HP and 3PAR following news of Dell's exit. The two companies have signed a definitive merger agreement. As for Dell, it has already received the $72 million break-up fee that it was entitled to on the termination of its merger agreement with 3PAR.
Dell really wants to acquire to data storage provider 3Par. So does Hewlett Packard. As a result, what started off as a $1.13 billion bid now sits at $2 billion, and the bidding war still doesn't appear to be over.
It all started when Dell agreed to purchase 3Par for $1.13 billion in mid-August. While the deal appeared imminent, rival HP stepped in just a week later with a $1.5 billion bid of its own. What would follow is a high-dollar game of "outbid your opponent," and for the time being, HP is winning with a $2 billion offer.
"Both companies would benefit from 3Par," said IDC Vice President Benjamin Woo. "HP is due for a full refresh for its mid- to high-end storage portfolio" while "Dell wants to own a product for the top price bands in the $100,000+ range."
How high are HP and Dell willing to go? That remains to be seen, but according to each one's financial reports, HP is sitting on $14.8 billion in gross cash and Dell has $13.1 billion in cash and investments.
HP and Dell took the bidding war for data storage company 3PAR to a whole new level today. Although it was a day that began with HP as the favorite to acquire 3PAR and ended the way it started, it wasn't an unremarkable one by any means as there was a lot in between.
Dell countered Hewlett-Packard's $1.5 billion buyout bid with a $1.6 billion offer of its own earlier in the day, but the world's leading PC maker wasted little time in bettering Dell's offer. Its latest offer: $1.8 billion, or $27 per share, in cash.
HP's message to Dell is clear: "It's on like Donkey Kong." That's what happens when, just a week after you agree to acquire a company for $1.13 billion, your rival steps in with an offer of $1.5 billion for the same company.
In this case, HP is the aggressive rival hoping to scoop up data storage provider 3Par, which seemed all but sold to Dell just a short while ago. HP has offered to pay $24 per share for 3Park, a third more than Dell's bid of $18 per share.
This tug-of-war between HP and Dell has had a positive effect on 3Par's shares so far, which rose to $6.66, or 37 percent, to $24.70 in premarket trading. Should HP ultimately win the bidding war, it would be adding to a data storage business that already accounts for about 13 percent of its bottom line.