(WEB HOST INDUSTRY REVIEW) — Dell (www.dell.com) announced on Monday it will acquire data storage provider 3Par (www.3par.com) for about $1.15 billion.
3Par investors will receive $18 a share in cash, which is nearly twice the stock’s closing price of $9.65 on Friday.
Fremont, California-based 3Par manufactures hardware and software for reducing data storage requirements.
The acquisition will position the company to compete with market giants like HP and IBM for more complex computer systems and technology services that earn higher profits than computers.
In June, Dell unveiled new technology, services, management tools and business ready solutions, including storage platforms and IT infrastruture solutions.
At the time, the company said it plans to double the size of its data center and technology services business in part through acquisitions.
A month later, Dell acquires data center infrastructure software firm Scalent, as well as storage company Ocarina Networks.
3Par saw an 85 percent rise in its stock Monday from $8.23 to $17.88 at 9:31 a.m. on the New York Stock Exchange. Meanwhile, Dell’s stock fell 19 cents to $11.82 on the Nasdaq Stock Market.
Dell began its foundation in data storage offerings, which makes up for about 4 percent of Dell’s total sales, when it bought EqualLogic in 2007 for $1.4 billion.
Since then the storage business has shown steady growth, with a 4 percent increase to $554 million in the first quarter.
The storage market continues to get more competitive as large technology companies make high-profile storage acquisitions. In April, HP bought 3Com for $2.7 billion in April, while Oracle bought Sun Microsystems for about $7.3 billion in January.
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