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

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,776.91 93.33 0.53%
Nasdaq 4,997.46 5.52 0.11%
S&P 500 2,081.34 12.58 0.61%
Treasuries 2.23 -0.05 -2.06%
Data as of 1:02am ET
Company Price Change % Change
Bank of America Corp... 16.69 -0.25 -1.48%
Apple Inc 125.69 -0.31 -0.25%
Micron Technology In... 18.20 -0.12 -0.66%
Freeport-McMoRan Inc... 17.25 -0.59 -3.31%
Intel Corp 29.90 -0.14 -0.47%
Data as of Jul 7
Sponsors

Sections

Jared Fogle's weight loss success story is well known. But the success of Subway, the sandwich chain he's promoted for 16 years, is less well known. More

In an interview with CNN, Hillary Clinton bashed the treasury's decision to make a woman share space on the $10 bill. More

Samsung misjudged demand for its new phones, leading it to make more of the lower cost S6 than it could sell and not enough of the S6 Edge that people want, analysts say. More

Entrepreneur Guillaume Gauthereau is on a mission to build a 50 to a 100 acre sanctuary in New York to provide refuge to honey bees. More

The FTC and Florida's attorney general claim a debt relief operation has made millions from consumers by promising to help get them out of credit card debt, but instead stuck them with even more. More