Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Dell buys data-storage company

By Julianne Pepitone, staff reporter


NEW YORK (CNNMoney.com) -- Dell Inc. said Monday it has agreed to acquire data-storage company 3PAR for $1.15 billion, a move the computer maker says could cut its data management costs by 50%.

Dell (DELL, Fortune 500) said Monday it will begin a tender offer to buy all of the outstanding common stock of 3PAR for $18 a share in cash. The price is an 86.5% premium to 3PAR's closing price Friday of $9.65.

Shares of Fremont, Calif.-based 3PAR (PAR) shot up more than 85% in premarket trading to $17.89. Dell shares were flat.

"We have aligned our storage offerings over the last several years to provide our customers choice and value," said Brad Anderson, senior vice president of Dell's enterprise product group.

The 3PAR purchase came after Dell's 2008 acquisition of data-storage company Equal Logic and a continued partnership with storage network firm EMC.

Dell said the purchase of 3PAR should add to earnings in its fiscal year ending in January 2012.  To top of page

Index Last Change % Change
Dow 18,308.15 164.70 0.91%
Nasdaq 5,312.00 42.85 0.81%
S&P 500 2,168.27 17.14 0.80%
Treasuries 1.61 0.05 3.28%
Data as of 4:50pm ET
Company Price Change % Change
Procter & Gamble Co 89.75 1.52 1.72%
Bank of America Corp... 15.65 0.49 3.23%
Chesapeake Energy Co... 6.27 0.15 2.45%
Wells Fargo & Co 44.28 -0.09 -0.20%
Cognizant Technology... 47.71 -7.29 -13.25%
Data as of 4:15pm ET
Sponsors

Sections

China is no longer offering Venezuela new loans, according to experts. It spells bad news for Venezuela, which relied heavily on Chinese finance. More

Teddy Ruxpin, the hugely popular talking bear from the 1980s, is making a comeback. Teddy 2.0 will still tell stories, but he's getting a few upgrades. More

U.S. Labor Secretary Tom Perez writes about why the Labor Department introduced a new rule requiring federal contractors to provide paid sick leave to workers. More