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 17,038.63 -12.12 -0.07%
Nasdaq 4,818.67 7.88 0.16%
S&P 500 2,010.05 -3.38 -0.17%
Treasuries 2.10 -0.01 -0.52%
Data as of 2:06pm ET
Company Price Change % Change
Bank of America Corp... 15.57 -0.18 -1.14%
Alcoa Inc 10.44 -0.57 -5.21%
Apple Inc 111.66 2.16 1.97%
Freeport-McMoRan Inc... 13.40 -0.06 -0.42%
General Electric Co 28.04 0.00 0.02%
Data as of 1:51pm ET


Jim Chanos, the hedge fund billionaire, is bullish on America. And President Obama is a big part of the reason why. More

The National Domestic Workers Alliance introduced a new initiative, Good Work Code, to set standards and protections for on-demand workers. More

Karim Abouelnaga turned down a job on Wall Street to address a problem that set him back as a low-income student: the summer slide. More

The Pentagon is prohibiting military veterans from using GI Bill funding to pay for tuition at the University of Phoenix. More