As reported by this blog yesterday, Dell increased its offer by 35 per cent for 3Par, escalating the bidding war with Hewlett-Packard for the data storage company.
Dell said that 3Par had accepted its new cash offer of $24.30 a share, which values 3Par at $1.6 billion. Dell made its initial $18 a share offer earlier this month but was trumped by a higher bid from rival HP. Dell maintained on Thursday that data storage was at the forefront of its strategy to provide better and cheaper offerings to its data centre customers. Dell is far behind HP and IBM in enterprise services and has been acquiring companies with significant premiums. Dell should have difficulty however justifying such premiums to its own shareholder that should look beyond this deal into the sustainability of Dell Services.
Global dealmaking in the sector has risen by 60 per cent this year, according to Dealogic data, even as market volatility and ailing confidence in the economy has helped stifle an M&A recovery in some sectors.
That resurgence has been led by the US, where deal volumes have almost doubled relative to 2009 because of big transactions, including Intel’s move last week to buy McAfee for $8 billion.
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