HP Bids $1.6B for Data Storage Firm 3PAR

In a bid to accelerate its Converged Infrastructure strategy, Hewlett-Packard has submitted a proposal to buy data storage and information management firm 3PAR for a total of $1.6 billion.

According to HP’s Monday announcement, it is offering 3PAR $24 per share in cash for all the company’s outstanding shares, a 33-percent premium over Dell's $18-per-share bid. Additionally, HP's proposal is not subject to any financing contingency and has been approved by HP's board of directors.

With the acquisition, HP hopes to unlock the potential of 3PAR's storage architecture through synergies. “Our global reach, strong routes to market and commitment to innovation uniquely position HP as the ideal fit for 3PAR," said Dave Donatelli, executive vice president and general manager of enterprise servers, storage and networking at HP. "We've seen great momentum with our Converged Infrastructure strategy, and 3PAR accelerates that strategy, particularly in cloud and scale-out markets."

The addition of 3PAR's next-generation storage architecture will accelerate HP's winning Converged Infrastructure strategy, which provides customers with an unmatched portfolio of intellectual property across storage, server and networking solutions. 3PAR's highly scalable storage systems will further strengthen HP's ability to deliver the highest levels of performance, efficiency and reliability to customers worldwide. The combination will bolster HP's storage offerings and diversify its portfolio across key growth markets beyond the highly competitive computer manufacturing arena.

If approved by 3PAR, HP expects the transaction to close by the end of the calendar year.

In April, HP completed its $2.7 billion acquisition of 3Com, expanding the company’s Ethernet switching offerings, adding routing solutions, and strengthening the company’s position in China.

Earlier this month, chief executive officer Mark Hurd, who played no small role in establishing HP as a leader in the industry, was ousted in relation to an ethics scandal after five years at the helm. His replacement will no doubt play a large part in the company’s overall strategy.